Question 14: Wrobbel Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit		Percent of Sales
Selling price	$	200	100%
Variable expenses		36	18%
Contribution margin	$	164	82%

Fixed expenses are $130,000 per month. The company is currently selling 1,200 units per month.

Management is considering using a new component that would increase the unit variable cost by $46. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units.

Required:

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.)