Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit. If Ramort doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the company's contribution margin increase or decrease under variable costing?

Direct materials	$	10	per unit
Direct labor	$	12	per unit
Overhead costs for the year
Variable overhead	$	3	per unit
Fixed overhead per year	$	40,000
Selling and adminstrative costs for the year
Variable	$	2	per unit
Fixed	$	65,200
Normal production level (in units)		20,000	units

Would the income be different if using variable costing instead of absorption costing?

RAMORT COMPANY Variable Costing Income Statement (Partial) Production volume (units) 20,000 Sales volume (units) 20,000 40,000 20,000 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT Under variable costing, can a company increase its net income by increasing production