if the sales volume decreases by 25 and the variable expense per unit increases by 1 636506

Holger Incorporated, which produces and sells a single product, has provided the following

data:

Sales	2,000 units
Selling price	$60 per unit
Variable expense	$40 per unit
Fixed expense	$20,000

Consider each of the following questions independently.

If the sales volume decreases by 25% and the variable expense per unit increases by 15%, net operating income is expected to:

A) decrease by $19,000

B) decrease by $1,000

C) increase by $1,750

D) decrease by $15,000