Moylan Company Has Provided the Following Contribution Margin Income Statement

Moylan Company has provided the following contribution margin income statement:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 777,000 \\\hline \text { Variable expenses } & \$ 504,000 \\\hline \text { Contribution margin } & \$ 273,000 \\\hline \text { Fixed expenses } & \$ 212,000 \\\hline \text { Operating incame } & \$ 61,000 \\\hline\end{array}$$
If the sales volume increases 10%, which of the following statements is CORRECT?

A) Operating income will increase $6,100.
B) Operating income will increase $27,300.
C) Fixed expenses will increase $21,200.
D) Contribution margin will increase $77,700.