Answer:
D) $36,000
Explanation:
Company                            Current        After Increase    Change
Sales                                   $100,000    $140,000            +40,000
Variable cost                      $60,000     $84,000              +24,000
Contribution margin          $40,000     $56,000               +16,000
Fixed expenses                 $20,000     $20,000               +0
Operating income             $20,000     $36,000                +16,000
The Increase in Operating Income will be = $36,000 as our final answer