Pool Company's variable expenses are 26% of sales. Pool is contemplating an advertising campaign that will cost $19,000. If sales increase by $79,000, the company's net operating income should increase by:(Do not round intermediate calculations.)

	$72,520
→	$39,460
	$20,540
	$10,260

CM ratio = 1 − Variable expense ratio

= 1 − 0.26

= 0.74

Increase in net operating income = (CM ratio × Increase in sales) − Increase in fixed expenses

= (0.74 × $79,000) − $19,000= $58,460 − $19,000 = $39,460