Hancock Company manufactures and sells two lines of furniture, case goods and upholstery, During the most rece accounting period, the Case Goods and Upholstery Divisions sold 18,600 and 2,540 units, respectively. The company's most recent financial statements are shown below: (Do not round intermediate calculations.) Case Goods $1,978,000 Upholstery $588,800 Sales Less cost of goods sold: Unit-level production cost Depreciation, production equipment Gross margin Less operating expenses: Unit-level selling and administrative costs Corporate-level facility expenses (fixed) Net income (loss) 1,234,000 294,000 $ 450,000 304,800 76,200 $127,000 74,400 70,000 305,600 63,500 70,000 $ (6,500) If unit sales for both divisions increased 10%, the company would report which of the following? Multiple Choice Multiple Choice A $70,000 increase in net income for the Upholstery Division O A 10% increase in total net income of the company A decline in profit for the Upholstery Division A net income for the Upholstery Division of $7.470