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What would be the effect on net income

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Reference no: EM131785528

The Cape Cod Cotton Candy Company had the following information available regarding last year's operations:

Sales (100,000 units) $200,000

Variable costs 100,000

Contribution margin 100,000

Fixed costs 50,000

Net Income 50,000

If sales were to increase by 200 units, what would be the effect on net income?

a. $400 increase

b. $200 increase

c. $150 increase

d. $100 increase

e. $200 loss

Reference no: EM131785528

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