Please help with the following problem.
Use the following to answer questions:
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less variable expenses 700,000
Contribution margin 300,000
Less fixed expenses 180,000
Net income $120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
Question: If sales increase by 100 units, by how much should net income increase?
A) $400
B) $4,800
C) $1,500
D) $2,500
Question: How many units would the company have to sell to attain target profits of $150,000?
A) 22,000
B) 37,500
C) 25,000
D) 26,667