what would o rsquo brien inc rsquo s operating income or loss be if fixed costs were 639261

O’Brien, Inc.’s, 2010 contribution margin income statement shows the following:

Sales @ $8 per unit

$ 160,000

Less: Variable expense

(128,000)

Contribution margin

$ 32,000

Less: Fixed expenses

(44,000)

Operating income (loss)

$ (12,000)

What would O’Brien, Inc.’s, operating income (or loss) be if fixed costs were increased by 10 percent and sales volume increased by 30 percent?

a. $1,290.

b. $2,650.

c. $(6,800).

d. $(9,680).

e. None of the above.