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125.d Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Selling price per doll $8.00

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125.d Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Selling price per doll $8.00 Variable costs per doll: Production (manufacturing costs) $1.20 Selling and administration (non-manufacturing costs) $0.40 Total fixed costs: Production (manufacturing costs) $40,000 per year Selling and administration (non-manufacturing costs) $32,000 per year Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income? A. Income would increase by 10% B. Income would increase by about 19% c. Income would increase by $11,200 D. Income would increase by about 51%

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