The following is a variable costing income statement:

Sales	$750,000
Variable manufacturing costs	$200,000
Variable selling/admin. costs	$150,000
Contribution margin	$400,000
Fixed manufacturing overhead	$ 50,000
Fixed selling/admin expense	$ 75,000
Operating income	$275,000

Determine the increase in operating income when sales increase by 8%.

Select one:

a. $32,000

b. $28,000

c. $60,000

d. $22,000