Loren Company's Single Product Has a Selling Price of $15

Loren Company's single product has a selling price of $15 per unit.Last year,the company reported total variable expenses of $180,000,fixed expenses of $90,000,and an operating income of $30,000.A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%.If her proposal is adopted,what would the outcome be for operating income?

A) Increase by $45,000.
B) Increase by $37,500.
C) Increase by $7,500.
D) Increase by $28,500.New Op.Income = (20,000 * .90 * $8.25) - 90,000 = $58,500.