A company has provided the following data:
Sales.................................3,000 units
Sales Price...........................$70 per unit
Variable Cost........................$50 per unit
Fixed Cost...........................$25,000
If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will:
A. increase by $61,000.
B. increase by $20,000.
C. increase by $3,500.
D. increase by $11,000.