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

Per Unit Percent of Sales

Selling price $ $250100\%$

Variable expenses $5020\%$

Contribution margin $ $20080\%$

Fixed expenses are $$170,000$ per month. The company is currently selling $1,200$ units per month.

Required:

Management is considering using a new component that would increase the unit variable cost by $$66.$ 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? $($Negative amounts should be indicated by a minus sign.$)$