An income statement for Crandall's Bookstore (a retail company) for the first quarter of the current year is presented below: Sales .... $400,000 Cost of Goods Sold 280,000 Gross Margin 120,000 Operating expenses: Selling ......... $49,000 Administrative 49.000 98,000 Operating income $ 22,000 On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales revenue, with the remainder being fixed. If book sales increase by 10% during the coming year due to increased demand, by how much should Crandall's operating income increase? $6,400 increase $34,400 increase O $12,000 increase $2,200 increase O $40,000 increase SCE PE