Thornbrough Corporation produces and sells a single product with the following characteristics:

	Per Unit			Percent of Sales
Selling price	$	220			100	%
Variable expenses		44			20	%
Contribution margin	$	176			80	%

The company is currently selling 7,000 units per month. Fixed expenses are $901,000 per month.

The marketing manager believes that a $28,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Multiple Choice

decrease of $28,000

increase of $33,440

increase of $5,440

decrease of $5,440