A company has provided the following data:

Sales	2,950	units
Sales price	$ 89	per unit
Variable cost	$69	per unit
Fixed cost	$25,000

If the sales volume decreases by 20%, the variable cost per unit increases by 10%, and all other factors remain the same, net operating income will: (Do not round intermediate calculations.)

a. decrease by $5,916.

b. decrease by $28,084.

C. increase by $21,406.

d. decrease by $16,000