A company produces and sells 20,000 widgets, resulting in a profit of $30,000. The contributino margin rate
on this prodcut is 40%. Fixed costs for the company are$80,000. The company hopes to increase sales and prodcution by 10,000 units.
Althoughvariable costs per unity will stay the same an additinoal investmetn of $8,000 will be required for this level of sales.
What will be the increase in net income for the production and sale of the additional 10,000 units?
47000
7000
77000
15000
55000