Question $2$

Swisher, Incorporated reports the following annual cost data for its single product:

$\backslash$table$[[$Normal production leve,$130,000,$units$],[$Direct materials,$$8\mathrm{.}40,$per unit$],[$Direct labor,$$3\mathrm{.}93,$er unit$],[$Variable overhead,$$5\mathrm{.}80,$per unit$],[$Fixed overhead,$$150,00,$in total$]]$

This product is normally sold for $$48$ per unit. If Swisher increases its production to $50,000$ units, while sales remai level, by how much would the company's income increase or decrease under variable costing?

$$ $$60,000$ decrease.

$$90,000$ decrease.

There is no change in income.

$$90,000$ increase.

$$60,000$ increase.