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Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable costs are $12 per unit, and fixed costs total $270,000 annually.

Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable costs are $12 per unit, and fixed costs total $270,000 annually.

Assume that the operating results for last year were as follows

Sales (60,000 Units) total: $600,000

Variable Cost total:240,000

Contribution Margin total: 360,000

Fixed Cost total:270,000

Operating Income total:90,000

The president expects sales to increase by 16% next year. By how much should operating income increase?

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