In preparing for operations for the coming year, ABC management has made the following estimates:

Sales ($25,000 units)= $1,000,000

direct materials= $250,000

direct labor (variable)= $50,000

Manufacturing overhead cost:

variable= $75,000

fixed= $100,000

Selling and administrative expenses:

variable= $25,000

fixed= $50,000

Required: Calculate the following item:

If sales increase by 30% and if unit variable production costs increase by 15% with no change in total fixed cost, what will be the change in net operating income?