#$2$ Wrobbel Co$.$

The company produces and sells a single product. Data for the product is below.

Selling price per unit $ $$150$

Variable cost per unit ${90}_{?}$

Contribution margin per unit $$60$

The company's current fixed costs are $$307,000$ and it sells $6,000$ units.

Management is thinking about changing a production component that will increase variable cost per unit by $$2.$ The new component will improve the product's reliability and sales are expected to increase by $200$ units. If this change is made, what will be the effect on the company's net income?

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