Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit?
Oa. Decrease by $6,000
Ob. Decrease by $2,500
Oc. Increase by $15,000
Od. Increase by $6,500
Oe. Increase by $12,500