Product $1$: Global Fusion Meal Kits

i$.$ Forecast Annual Demand in Units

Estimated Demand: $4,250$ units

ii$.$ Forecast Price per Unit

Price per Unit: RM $20$

iii. Forecast Sales

Total Sales: $4,250$ units $*$ RM $20/$unit $=$ RM $85,000$

iv$.$ Forecast Variable Expenses

Ingredients Cost per Unit: RM $8$

Packaging Cost per Unit: RM $2$

Total Variable Cost per Unit: RM $10$

Total Variable Expenses: $4,250$ units $*$ RM $10/$unit $=$ RM $42,500$

v$.$ Forecast Fixed Expenses

Fixed Production Overheads: RM $10,000$

Marketing and Promotion: RM $6,000$

Administrative Costs: RM $4,000$

Total Fixed Expenses: RM $20,500$

vi$.$ Forecast Contribution Margin

Sales Revenue: RM $85,000$

Less: Variable Expenses: RM $42,500$

Contribution Margin: RM $85,000-$ RM $42,500=$ RM $42,500$

vii. Forecast Net Operating Profit $/$ Loss

Contribution Margin: RM $42,500$

Less: Fixed Expenses: RM $20,500$

Net Operating Profit: RM $42,500-$ RM $20,500=$ RM $22,000$

These are the data, please answer the following questions:

If sales increase by $20\%,$ how much would you expect the monthly net operating income to increase or decrease?