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A small business produces a single product and reports the following data: Sales price S8.50...

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Accounting

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A small business produces a single product and reports the following data: Sales price S8.50 per unit Variable cost $5.25 per unit Fixed cost $22,000 per month units per Volume 10,000 month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? A. It will decrease by $5, 500. B. It will increase by $10, 500. C. It will decrease by $10, 500. D. It will increase by $5, 600

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