5) The Alma Company had the following income statement for the month of July: Alma Company Income Statement For the Month of July $700,000 Sales ($70 x 10,000) Cost of goods sold Direct materials ($15 x 10,000) Direct labor ($10 x 10,000) Variable factory overhead (57 x 10,000) Fixed factory overhead $150,000 100,000 70,000 220,000 540.000 $160,000 Gross profit Selling and administrative expenses: 10,000 140,000 Variable ($1 x 10,000) Fixed 150,000 $10,000 Operating income If the monthly sales volume increases by 500 units with no increase in fixed costs, how much will Alma Company's net income increase for the month? O a. $18,500 Ob. $7,500 Oc. $19,000 d. $22,500