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Cherry Street Market reported the following information for the sales of their only product, cherries sold by the pint: Total Per Unit Sales.

Cherry Street Market reported the following information for the sales of their only product, cherries sold by the pint:
                                  Total       Per Unit
Sales............................ $31,500      $4.50
Variable expenses................   9,450       1.35
Contribution margin..............  22,050      $3.15
Fixed expenses...................  13,000
Net operating income............. $9,050
Cherry Street would like to increase their selling price by 50 cents per unit, and feel that this will decrease sales volume by 10%. Should Cherry Street increase the price, and what will the effect be on net operating income?
A) Yes; $3,500 increase
B) Yes; $945 increase
C) No; no change
D) No; $945 decrease

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