Kramer Company expects the following results next year.

Sales	$300,000
Variable costs	$220,000
Fixed costs	$ 50,000
Expected production and sales	2,000 units

The sales manager believes sales could be increased by 200 units if advertising expenditures are increased by $5,000. If advertising expenditures are increased and sales increase by 200 units, the effect on operating income will be:

Select one:

a. a decrease of $5,000

b. none of these

c. an increase of $25,000

d. an increase of $3,000

e. a decrease of $2,000