1. Radio Inc. manufactures and sells its product i-radio. Its contribution margin/unit is $100. Currently, the company produces and sells 2,000 units. What is the impact on the net income if the company increases the direct material cost by $30, and increases sales to 4,000 unites?
   1. None of the above
   2. The net income will increase by $120,000
   3. The net income will increase by $80,000
   4. The net income will decrease by $120,000