Waterproof Roofing Company has provided the following information:

Sales revenue	$778,000
Variable costs	505,000
Fixed costs	212,000

Which of the following statements is true, if the sales volume increases by

10%?

A.Contribution margin will increase by

$77,800.

B.Fixed expenses will increase by

$21,200.

C.Operating income will increase by

$50,500.

D.Operating income will increase by

$27,300.

Please show work.