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A small business produces a single product and reports the following data: Sales price $8.50 per unit Variable cost $5.25 per unit Fixed cost $22,000

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A small business produces a single product and reports the following data: Sales price $8.50 per unit Variable cost $5.25 per unit Fixed cost $22,000 per month units per Volume 10,000 month The company believes that the volume will go up to 11,000 units of the company reduces its sales price to $7.50. How would this change affect operating income? O A. It will increase by $10,500 OB. It will decrease by $7.750 O C . It will increase by 57.750 OD. It will decrease by $10,500

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