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Sammy's Salsa, Inc. sells a single product. This year, 10,000 units were sold resulting in $100,000 of sales revenue, $30,000 of variable costs, and $50,000

Sammy's Salsa, Inc. sells a single product. This year, 10,000 units

were sold resulting in $100,000 of sales revenue, $30,000 of

variable costs, and $50,000 of fixed costs. The company's income

tax rate is 20%. If annual sales had been $25,000 higher, calculate

the net income effect.

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