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

	Per Unit			Percent of Sales
Selling price	$	130			100	%
Variable expenses		78			60	%
Contribution margin	$	52			40	%

The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Select one:

a.

decrease of $5,000

b.

decrease of $2,280

c.

increase of $2,280

d.

increase of $7,280