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Acme, Inc. manufactures Prince moustache pencils which sell for $7.50 each. Acme expects to sell 82,000 Prince pencils next quarter. At this level of sales,

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Acme, Inc. manufactures Prince moustache pencils which sell for $7.50 each. Acme expects to sell 82,000 Prince pencils next quarter. At this level of sales, variable expenses will total $184,500 and fixed expenses will total $242,130. 27. The marketing department forecasts that sales will increase by 40% next quarter if Acme changes the name on the pencil package to the Prince/DeeBarge moustache pencil. This change will not affect the cost structure for the pencils. What will be the dollar increase in net income if Acme changes the name? A. $861,000 B. $360,570 C. $246,000 D. $172,200 E. None of the above

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