The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost and revenue data for the F-27 fan are as follows:

Annual Sales	4000 units
Unit Selling Price	$58
Unit Variable Costs
Production	$34
Selling	$4
Avoidable Fixed Costs per year
Production	$20,000
Selling	$30,000
Allocated common fixed costs per year	$55,000

Avoidable fixed costs above relate solely to F-27 and Allocated common fixed costs per year above would not be impacted by the addition of the F-27 product. If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. Calculate the INCREASE or the DECREASE (you must specify which it is for your answer to be marked correct) and the dollar amount of the CHANGE in net operating income if the F-27 product is added next year.