Reference no: EM132509442

Bloomington Corporation reported the following on their contribution format income statement:

Sales (12,000 units)                        $175,000

Less: Variable expenses                    100,000

Contribution margin                           75,000

Less: Fixed expenses                       62,500

Net operating income                        $ 12,500

Question 1: If sales increase by 10%, net operating income will increase by what amount?

A.$ 1,500

B.$30,000

C.$ -0-

D.$ 7,500