Question: CatHats unit selling price is $30, the unit variable costs are $10, fixed costs are $125,000, and current sales are 10,000 units. How much will

CatHats unit selling price is $30, the unit variable costs are $10, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income in the income statement change if fixed costs decrease to 100,000?

a.Operating income stays the same

b.$25,000 decrease

c.$25,000 increase

d.Cannot be determined from the available information.

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