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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 220 100 %

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

Per Unit Percent of Sales
Selling price $ 220 100 %
Variable expenses 66 30 %
Contribution margin $ 154 70 %

Fixed expenses are $362,000 per month. The company is currently selling 5,700 units per month.

Required:

The marketing manager believes that a $19,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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