Darien Industries operates a cafeteria for its employees. The operation of the c

Darien
Industries operates a cafeteria for its employees. The operation of the
cafeteria requires fixed costs of $4700 per month and variable costs of 40
percent of sales. Cafeteria sales are currently averaging $12000 per month.Darien
has an opportunity to replace the cafeteria with vending machines. Gross
customer spending at the vending machines is estimated to be 40 percent greater
than current sales because the machines are available at all hours. By
replacing the cafeteria with vending machines Darien would receive 16 percent
of the gross customer spending and avoid all cafeteria costs. How much does
monthly operating income change if Darien Industries replaces the cafeteria
with vending machines?