Question: Data concerning Cantillo Corporation's single product appear below: Fixed expenses are $105,000 per month. The company is currently selling 1,000 units per month. Management is

Data concerning Cantillo Corporation's single product appear below: Fixed expenses are

Data concerning Cantillo Corporation's single product appear below: Fixed expenses are $105,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $44. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What would be the overall effect on the company's monthly net operating income (i.e. profit) of this change? Decrease of $38,400 Decrease of $5,600 Increase of $5,600 Increase of $38,400

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