The following is Allison Corporation's contribution format income statement for last month:
|
Sales
|
$920,000
|
|
Variable expenses
|
360,000
|
|
Contribution margin
|
560,000
|
|
Fixed expenses
|
430,000
|
|
Net operating income
|
130,000
|
The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.
If sales increase by 260 units, by how much should net operating income increase?
$23,920
$14,560
$7,280
$3,380