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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...

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

Per Unit Percent of Sales
Selling price $ 190 100 %
Variable expenses 76 40 %
Contribution margin $ 114 60 %

Fixed expenses are $343,000 per month. The company is currently selling 3,800 units per month.

Required:

The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Change in net income:

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