1.A company has provided the following data:

Sales	6,000 units
Sales price	$100 per unit
Variable cost	$70 per unit
Fixed cost	$30,000

If the sales volume decreased by 20%, variable costs increase by 10%, and all factors remain the same, what will happen to operating income?

Multiple Choice

• Decrease by $69,600.

• Decrease by $58,000.

• Decrease by $7,500.

• No change in operating income.