A sales manager has projected that an increase in the monthly advertising budget to
$25,000 will increase monthly sales from 10,000 units to 12,000 units. Each unit sells for $50 with total variable costs per unit of $40. Monthly fixed expenses, including the current advertising costs of $5,000, total $20,000. Given the above data, what will be the expected impact on net income?
A. A decrease of $5,000.
B. A decrease of $110,000.
C. An increase of $5,000.
D. No change.