Question: Data concerning the Clark Corporation's single product appear below: Per unit Percent of Sales Selling Price $240 100% Variable expenses 102 42.5% Contribution margin $138

Data concerning the Clark Corporation's single product appear below:

	Per unit	Percent of Sales
Selling Price	$240	100%
Variable expenses	102	42.5%
Contribution margin	$138	57.5%

Fixed expenses are $75,000 per month. The company is currently selling 1,100 units per month. Management is considering using a new component that would increase the unit variable cost by $22. Since the new component would increase the features of the company's product, the marketing manager predicts that the monthly sales would increase by 300 units. What should be the overall effect on the company's monthly net operating income (NOI) of this change?

$______________ increase / decrease from prior NOI (identify either increase or decrease in your answer)

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