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