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You are given the following information related to ABC company for the next year. Total...

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Accounting

You are given the following information related to ABC company for the next year. Total fixed costs $840,000 Sale price per unit 80 Variable cost per unit 30 If ABC spends an additional $35,000 on advertising, sales volume would increase by 2500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of ABC? Select one: a. Operating income will decrease by $90,000. b. Operating income will increase by $200,000. c. Operating income will increase by $90,000. d. Operating income will increase by $125,000.

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