A Company's Manager Estimates That in the Upcoming Year, Decreasing

A company's manager estimates that in the upcoming year, decreasing advertising costs by $50,000 will cause sales revenue to decrease by $120,000. If the company's contribution margin ratio is 35%, what will be overall effect on net operating income?

A) Net operating income will increase by $8,000.
B) Net operating income will decrease by $8,000.
C) Net operating income will increase by $24,500.
D) Net operating income will decrease by $24,500.