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The following is Allison Corporation's contribution format income statement for last month: Sales $800,000 Less: variable expenses 300,000 Contribution margin 500,000 Less: fixed expenses 400,000

The following is Allison Corporation's contribution format income statement for last month: Sales $800,000 Less: variable expenses 300,000 Contribution margin 500,000 Less: fixed expenses 400,000 Operating income $100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. If sales increase by 200 units, by how much should before-tax profits increase?

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