Murphy has the following information on its Contribution Margin Income Statement:

CM Income Statement

Units Sold Per Unit Total

Sales 300,000.00 $5.00 $1,500,000.00

Variable Costs 300,000.00 $1.00 $300,000.00

Contribution Margin $1,200,000.00

Less Fixed Costs $700,000.00

Total Income Before Tax $500,000.00

if the company's sales increase by 10%, the company's income before tax will be ________________.

A.$620,000

B.Remain at $500,000

C.$75,000

D.$567,000