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

	Per Unit				Percent of Sales
Selling price	$	185				100	%
Variable expenses		37				20	%
Contribution margin		148				80	%

Fixed expenses are $1,160,000 per month. The company is currently selling 9,060 units per month. Management is considering using a new component that would increase the unit variable cost by $8. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 530 units. What should be the overall effect on the company's monthly net operating income of this change?

A. decrease of $1,720

B. increase of $74,200

C. increase of $1,720

D. decrease of $74,200