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

	Per Unit			Percent of Sales
Selling price	$	250			100	%
Variable expenses		50			20	%
Contribution margin	$	200			80	%

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 amount should be indicated by a minus sign.)

Change in net operating income is 12,200

is this correct?