Fairfield Company Management Has Budgeted the Following Amounts for Its

Fairfield Company management has budgeted the following amounts for its next fiscal year:
$$\begin{array} { | l | r | } \hline \text { Total fixed expenses } & \$ 832,500 \\\hline \text { Sale price per unit } & \$ 40 \\\hline \text { Varinble experses per urit } & \$ 25 \\\hline\end{array}$$
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If Fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. What effect will this decision have on operating income?

A) Operating income will decrease $62,500.
B) Operating income will increase $7,500.
C) Operating income will increase $70,000
D) Operating income will increase $37,500.