selling price per unit-$200

variable expense per unit-$64

fixed expense per month -$670,480

The company is planning on adding a new machine that will reduce direct labor costs by $1.00 per unit. The additional monthly depreciation is expected to be $2,000 per month. Because this machine is more efficient, the company decided to reduce its selling price by $3.00 and as a result expects to increase output and sales by 15%. If the company is currently producing and selling 5,200 units a month, what is the expected change in net operating income if the new machine is put into production