Top 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 $125,000 per month. The company is currently selling 1,300 units per month.
Required: Show your work.
a. Construct the company's contribution format income statement for 1,300 units. (Do not round intermediate calculations.)
b. Management is considering using a new component that would increase the unit variable cost by $49. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units.
c. What will be the overall effect on the company's monthly net operating income of this change?