Staley Co Manufactures Computer Monitors

Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000.

If an $18,000 increase in the advertising budget would increase monthly sales by $60,000, the new level of operating income (πB) for Staley Co. would be:

A) $19,800.
B) $21,800.
C) $24,800.
D) $23,800.
E) $20,800.