Violet sales corp, reports the yearminus−end information from 2018 as follows:

sales (35,625 units)

$285,000

cost of goods sold

116,000

gross margin

169,000

operating expenses

154,000

operating income

$15,000

violet is developing the 2019 budget. in 2019 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. all other operating expenses are expected to remain constant.

assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.

should violet increase the selling price in 2019?

a. yes, because sales revenue increases for 2019.

b. yes, because gross margin increases for 2019.

c. no, because sales volume decreases for 2019.

d. no, because operating income decreases for 2019.