Houpe Corporation produces and sells a single product. Data concerning that product appear below:

		Per Unit	Percent of Sales
	Selling price.................	$140	100%
	Variable expenses........	42	30%
	Contribution margin......	$98	70%

Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently. For questions 21 to 24 I need the amount of change and whether you consider it to be and increase or decrease to operating income.

The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $28,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect (including the dollar amount) on the company's monthly net operating income of this change?