A company has provided the following data:

Sales	50,000 units
Sales price	$100 per unit
Variable cost	$70 per unit
Fixed cost	$30,000

If the dollar contribution margin per unit is increased by 15%, total fixed cost is decreased by 25%, and all other factors remain the same, what will the outcome be for operating income?

Multiple Choice

• Decrease by $50,000.

• Increase by $200,000.

• Increase by $3,500.

• Increase by $232,500.