7. A company distributes a product that sells for S50 per unit. Variable expenses are $10 per unit, and fixed expenses total $15,000 annually. Assume that the company sold 4,000 units last year. The sales manager is convinced that a 10% reduction in the selling price, combined with a $30,000 increase in advertising expenditures, would increase annual unit sales by 50%. If these changes were made, by how much would net operating income increase or decrease? a. $20,000 increase b. $16,000 increase c. $12,000 decrease d. $10,000 decrease e. None of the above