TB Problem 3-160 Larita Corporation...

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

Per Unit Percent of Sales Selling price $ 200 100 % Variable expenses 50 25 % Contribution margin $ 150 75 %

Fixed expenses are $342,000 per month. The company is currently selling 3,700 units per month.

The marketing manager believes that a $19,000 increase in the monthly advertising budget would result in a 100 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.)