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.

The marketing manager believes that a $14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Multiple Choice

decrease of $700

increase of $700

decrease of $14,000

increase of $14,700