How much increase in income is expected

Reference no: EM13290806

Old Line Hobby is selling a car care product with contribution marging 50 % on sales of $500, 000 per year ( 50,000 units at 10 each). The fixed costs are 80, 000 per year and inventory levels are declining. If sales increase by 10, 000 units in the coming year, how much increase in income is expected?

a. 75,000
b. 35,000
c. 40,000
d. 50,000

Reference no: EM13290806

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