The Rial Company's income statement for June is given below: If sales for Division F increase $40,000 with a $10,000 increase in the Division's traceable fixed costs, the overall company net operating income should:

Can you show the steps and how you got your answer?

A. increase by $30,000 B. increase by $6,000 C. increase by $2,889 D. decrease by $4,000

Total Division F Division L $400,000 $220,000 $180,000 204,000132,000 2,000 Sales Contribution margin Traceable fixed expenses 196,000 88,000 127,000 55,000 2,000 69,000 $33,00036,000 Common fixed expense. Net operating income. 35,000 $34.000