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

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A small business produces a single product and reports the following data Sales price Variable cost Fixed cost $8.50 per unit $5.25 per unit $22,000 per month units per Volume 10,500 month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50 How would this change affect operating income? O A. It will decrease by $12,125 O B. It will increase by $12,125 O C. It will ncrease by $7,125 O D. It will decrease by $7,125

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