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Papaya Corporation has the following product information: table [ [ Sales price,$ 8 . 5 0 , per unit ] , [ Variable cost

Papaya Corporation has the following product information:
\table[[Sales price,$8.50,per unit],[Variable cost,$5.00,per unit],[Fixed cost,$22,000,month],[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 $7.25. How would this change affect operating income?
It will decrease by $13,000.
It will decrease by $10,250.
It will increase by $13,000.
It will increase by $10,250.
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