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Slughorn Company produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 270 100% Variable

Slughorn Company produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $ 270 100%
Variable expenses 108 40%

Contribution margin $ 162 60%

Fixed expenses are $367,000 per month. The company is currently selling 6,200 units per month.

The marketing manager believes that a $24,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales.

Required:

What should be the overall effect on the company's monthly net operating income of this change? (Negative amount should be indicated by a minus sign.)

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