Camerons Deli has total fixed cost of $150,000. Current operating income is $50,000. If sales increase by 12%, what will be the effect on operating income?

Group of answer choices

Operating income will increase by 3%.

Operating income will increase by 40%.

Operating income will increase by 48%.

Operating income will increase by 12%.

Cannot determine without more information. If you choose this answer, on your worksheet you must identify what other information you need and why.