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Unit Contribution Margin Calculation Lorris income statement is as follows: ...

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Accounting

Unit Contribution Margin Calculation
Lorris income statement is as follows:
Sales*$120,000Less variable costs(38,400)Contribution margin$81,600Less fixed costs(19,200)Net income$62,400
*8,000 units sold
If sales increase by 1,600 units, profits will:
Select one:
a.
Increase by $19,200
b.
Increase by $8,000
c.
Increase by $12,480
d.
Increase by $16,320

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