3. ABC Company manufactures the product XE-17. The product is sold at a unit price of $70. Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year. Required :

c. The manager of ABC company estimates that in the coming year, the companys sales will increase by $80,000 (from the current sales). How much should the net profit / loss increase/ decrease if the fixed costs remain constant? (5 marks)