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Hoppy Cat Toy Company has estimated the following amounts for its next fiscal year: If the company spends an additional $34,000 on advertising, sales volume

Hoppy Cat Toy Company has estimated the following amounts for its next fiscal year:

If the company spends an additional $34,000 on advertising, sales volume would increase by 2,900 units. What effect will this decision have on the operating income?

Operating income will decrease by $72,500.

Operating income will increase by $9,500.

Operating income will increase by $116,000.

Operating income will increase by $43,500.

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