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

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Accounting

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

per unit percent of sales
selling price $180 100%
variable expenses 36 20%
contribution margin $144 80%

Fixed expenses are $100,000 per month. The company is currently selling 1,500 units per month.

Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 700 units.
Required:

What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

change in net operating income: $___________

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