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

Fixed expenses are $$140,000$ per month. The company is currently selling $1,300$ units per month.

Required:

Management is considering using a new component that would increase the unit variable cost by $$52.$ Since the new component

would improve the company's product, the marketing manager predicts that monthly sales would increase by $500$ units. What should

be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected?

Note: Negative amounts should be indicated by a minus sign.