Spice Inc.'s unit selling price is $60, unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

A) $150,000 decrease
B) $175,000 increase
C) $200,000 increase
D) $150,000 increase

Operating Income

measures a company's profit after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Unit Selling Price

The price for which a single unit of a product is sold, not including discounts or promotions.

Unit Variable Costs

Costs that vary directly with the level of production or output, unlike fixed costs, which remain constant regardless of production volume.