Advanced Enterprises reports year-end information from 2019 as follows: Sales (161,250 units) Cost of goods sold Gross margin Operating expenses Operating income $967,000 (645,000) 322,000 (264,000) $58,000 Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. Should Advanced increase the selling price in 2020? OA. Yes, because sales revenue increases for 2020. OB. No, because sales volume decreases for 2020. O C. No, because gross margin decreases for 2020. D. Yes, because operating income increases for 2020.

Advanced Enterprises reports year-end information from 2019 as follows: Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. Should Advanced increase the selling price in 2020 ? A. Yes, because sales revenue increases for 2020 . B. No, because sales volume decreases for 2020 . C. No, because gross margin decreases for 2020 . D. Yes, because operating income increases for 2020