Papaya Corporation has the following product information:

Sales price	$8.50	per unit
Variable cost	$5.00	per unit
Fixed cost	$22,000	per month
Volume	10,500	units per month

The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.25. How would this change affect operating income?

Group of answer choices

It will increase by $14,750.

It will decrease by $14,750.

It will decrease by $9750.

It will increase by $9750.