Calderon Corporation produces and sells a single product. Data concerning that product appear below: 
Fixed expenses are $110,000 per month. The company is currently selling 1,000 units per month.
Required:
Management is considering using a new component that would increase the unit variable cost by $56. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!
Definitions:
Umbilical Cord
The flexible cordlike structure connecting a fetus in the womb to the placenta, transporting nutrients and oxygen from the mother and removing waste products.
Artery
A blood vessel that carries oxygenated blood away from the heart to various parts of the body.
Soften
To make or become less hard, stiff, or firm, often referring to the physical texture of objects or substances.
Light Palpation
A gentle method of examining the body by touch, used to assess the size, consistency, texture, and presence of certain structures or abnormalities.
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