The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fixed expenses 180,000 Net income $120,000

The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

If sales increase by 100 units, by how much should net income increase? Question 12 options:

$2,500.

$1,500.

$400.

$4,800.