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The Cape Cod Cotton Candy Company had the following information available regarding last year's operations: Sales (100,000 units) $200,000 Variable costs 100,000 Contribution margin 100,000

The Cape Cod Cotton Candy Company had the following information available regarding last year's operations:

Sales (100,000 units) $200,000 Variable costs 100,000 Contribution margin 100,000 Fixed costs 50,000 Net Income 50,000 If sales were to increase by 200 units, what would be the effect on net income?

a. $400 increase b. $200 increase c. $150 increase d. $100 increase e. $200 loss

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