Last year, Park, Inc., sold 50,000 units. The contribution margin ratio was 35%. Total fixed costs were $75,000. Assume that an increase in unit sales will lead to an increase in total sales by $120,000 next year. If cost behavior patterns remain unchanged, by how much will the company's net operating income change?

• A). Net operating income will decrease by $33,000

• B). Net operating income will increase by $42,000

• C). Net operating income will increase by $45,000

• D). Net operating income will increase by $78,000