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Larita Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 160 100 %

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

Per Unit Percent of Sales
Selling price $ 160 100 %
Variable expenses 40 25 %
Contribution margin $ 120 75 %

Fixed expenses are $345,000 per month. The company is currently selling 4,000 units per month.

The marketing manager believes that a $19,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales.

Required:

What should be the overall effect on the company's monthly net operating income of this change? (Negative amount should be indicated by a minus sign.)

Change in Net Operating Income:

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