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Determine how much should net income increase

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Problem 1: Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. If sales increase by 200 units, how much should net income increase?

Option 1: $1,600

Option 2: $6,000

Option 3: $10,000

Option 4: $19,200

Reference no: EM132640104

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