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How much does bonita operating income increase

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Problem 1: Bonita Industries produces flash drives for computers, which it sells for $30 each. Each flash drive costs $6 of variable costs to make. During April, 1400 drives were sold. Fixed costs for April were $7000. How much does Bonita's operating income increase for each $1600 increase in revenue per month?

Option 1: $1600.

Option 2: $1280.

Option 3: Not enough information to determine the answer.

Option 4: $42000.

Reference no: EM132789404

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