Question 23

Vaughn Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $8 of variable costs to make. During April, 820 drives were sold. Fixed costs for April were $3 per unit for a total of $2460 for the month. How much does Vaughn's operating income increase for each $1100 increase in revenue per month?

$660.

$605.

$16400.

Not enough information to determine the answer.