Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000? a. $37,500 decrease b. $12,500 increase c. $12,500 decrease d. $37,500 increase

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000?
                a.            $37,500 decrease           
                b.            $12,500 increase             
                c.             $12,500 decrease           
                d.            $37,500 increase
Answer
$12,500 increase