A company has provided the following data:

Sales	5,000 units
Sales price	$100 per unit
Variable cost	$70 per unit
Fixed cost	$30,000

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

• Decrease by $35,000.

• Decrease by $58,000.

• Decrease by $78,000.

• No change in operating income.