Question 8 10 pts Your Company sells machinery for $495 per unit. Its relevant range is 1 to 8,000 units. The following cost formula relates to its operations: TC = $45,000 + $295 * units. 'What is total income when 1,200 units are sold? $383,500 $195,000 $195,000 $155,000 $260,000 The selling price is $175 per unit. The contribution margin is $80 per unit. Fixed expenses are $395,000 per month. The company is currently selling 7,500 units. The production manager wants to increase the variable costs by 15% in order to improve the quality of the product. The marketing manager feels that a $40,000 advertising campaign designed to promote the improvements would lead to a 20% increase in monthly sales. If these changes are made, what is the net income expected to become? $105,750 $312,000 $196,750 $205,000 $156,750 What is contribution margin when 500,000 units are sold? Units Produced and sold 450,000 Sales revenue $2,812,500 Variable manufacturing expense $675,000 Fixed manufacturing expense $266,000 Variable selling and administrative expense $652,500 Fixed selling and administrative expense $232,000 net operating income $987,000 $1,152,000 $1,650,000 $1,475,000 $1,485,000