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

	Per Unit			Percent of Sales
Selling price	$	260			100	%
Variable expenses		65			25	%
Contribution margin	$	195			75	%

Fixed expenses are $180,000 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 $54. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units.

What is the change in net operating income?