Why is this the answer?

Kamryn Corporation produces and sells a single product. Data for that product are: Management is discussing increasing the price to $560 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? Selected Answer: Increase of $23,500 Answers: Increase of $23,500 Decrease of $80,000 Increase of $80,000 Decrease of $23,500