22. Hearts Co. reported the following performance for 2015. Total Per Unit Sales Revenue (120,000 units) $720,000 Total Variable Expense $300,000 Contribution Margin $420,000 $3.50 Fixed Expense 170 $120,000 Net Operating Income $300,000 $6.00 $2.50 In 2016, Hearts Co. is looking forward to expanding their production facility to meet current demand. In 2016, the company will be able to produce and sell 75,000 more units. Expanding production would require more space which will increase Heart Co.'s annual rent by $170,000. Assuming that the sales price and other cost patterns remain the same, if Hearts Co. goes ahead with these plans, what will be the impact on net operating income? A. Net operating income will increase by $ 17,500. B. Net operating income will increase by $ 92,500. C. Net operating income will decrease by $ 262,500. D. Net operating income will decrease by $ 130,000