Please explain.

A company that produces 10,000 units has fixed costs of exist300,000, variable costs of exist50 per unit, and a sales price of exist85 per unit. After learning that its variable costs will increase by 20 percent, the company is considering an increase in production to 12,000 units. Which of the following statements is correct regarding the company's next steps!? a. If production is increased to 12,000 units, profits will increase by exist50,000. b. If production is increased to 12,000 units, profits will increase by exist100,000. c. If production remains at 10,000 units, profits will decrease by exist50,000. d. If production remains at 10,000 units, profits will decrease by exist100,000