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

	Per Unit			Percent of Sales
Selling price	$	150			100	%
Variable expenses		60			40	%
Contribution margin	$	90			60	%

The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7,100 increase in the monthly advertising budget would result in a 190 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 $10,000

• decrease of $10,000

• increase of $17,100

• decrease of $7,100