Question $8$

$5$ pts

New equipment being considered by the Johnny Pickles Brewing Company is projected to increase current sales from $$12,629$ to $$14,671.$ Direct labor resulting from increased production will go from $$3,505$ to $$4,738.$ Direct material will increase from $$4,275$ to $$4,928.$ Variable overhead is expected to stay the same at $$745.$ The fixed expenses are expected to stay the same at $$962.$ What is the change to the Johnny Pickles Brewing Company net operating income if the brewery decides to proceed with the purchase of the new equipment? Increases in net operating income should be expressed as a positive number while decreases should be expressed as a negative number.