Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below: Product Basic Deluxe Total Sales $ 600,000 $ 400,000 $ 1,000,000 Contribution margin ratio 60 % 35 % ? Contribution margin per unit $ 9.00 $ 11.50 ? The companys fixed expenses total $400,000 per month. 5-a.

If sales increase by 5,000 units per month, by how much would you expect operating income to increase?