2)

Answer this question independent of the previous question. Holger Incorporated, which produces and sells a single product, has provided the following data: Sales 2,000 units Selling price $60 per unit Variable expense $40 per unit Fixed expense $20,000 If the selling price increases by 10%, sales volume decreases by 5%, and the fixed expenses increase by 20%, net income will be: Multiple Choice $5,400 $21.400 $24,000 $25,400