Merrimack Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $30,000 per month. Merrimack sells 500 units per month at a sales price of $300. If the quality of the tire is upgraded, the company believes it can increase the price to $325. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 40%. If Merrimack decides to upgrade, how will operating income be affected?