White Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $150 100% Variable Expenses 90 60% Contribution Margin $ 60 40% The company is currently selling 2,000 units per month. Fixed expenses total $106,000 per month. The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $5,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What would be the overall effect on the companys monthly net operating income if these two changes are implemented?

a. Increase of $31,000.

b. Decrease of $31,000.

c. Increase of $103,000.

d. Increase of $1,000.