Fairfield Company Management Has Budgeted the Following Amounts for Its

Fairfield Company management has budgeted the following amounts for its next fiscal year: 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.