MAR 03 Chapter Question 8 2 pts Papaya Corporation has the following product information Sales price Variable cost $9.00 per unit $5.00 per unit per Fixed cost $22.000month units per Volume 10,000 month The company believes that the volume will go up to 11,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? it will increase by $12.500. It will increase by $18.000 It will decrease by $12.500 It will decrease by $18,000