Herman's income statement is as follows: Sales (10,000 units) $40,000 Less variable costs - 24,000 Contribution margin $16,000 Less fixed costs - 12.000 Net income $4,000 If sales increase by $10,000, profits will: Select one: A. Increase by $3,000 B. Increase by $500 C. Increase by $4,000 D. Increase by $10,000