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Cherry Street Market reported the following information for the sales of their only product

 
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