Hoppy Cat Toy Company Has Estimated the Following Amounts for Its

Multiple Choice

Hoppy Cat Toy Company has estimated the following amounts for its next fiscal year: $$\begin{array} { | l | r | } \hline \text { Total fixed expenses } & \$ 833,500 \\\hline \text { Sale price per unit } & 40 \\\hline \text { Variable expenses per unit } & 25 \\\hline\end{array}$$ If the company spends an additional $34,000 on advertising,sales volume would increase by 2,900 units.What effect will this decision have on the operating income?

A) Operating income will decrease by $72,500.
B) Operating income will increase by $9,500.
C) Operating income will increase by $116,000.
D) Operating income will increase by $43,500.