Jen's Shampoo currently has fixed costs of $30,000. If Jen's Shampoo buys an additional $25,000 of advertising, management believes sales can increase from 4,375 to 7,000 units. The sales price is $28 and variable cost per unit is $12. What will be the effect on net income or loss?

Net income will decrease by $57,000

Net income will increase by $17,000

No effect on net income

Net income will increase by $57,000

Net income will decrease by $17,000