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

Per Unit			Percent of Sales
Selling price	$	130			100	%
Variable expenses		78			60	%
Contribution margin	$	52			40	%

The company is currently selling 6,500 units per month. Fixed expenses are $183,000 per month. The marketing manager believes that a $6,400 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Multiple Choice

• increase of $880

• increase of $7,280

• decrease of $6,400

• decrease of $880