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 Net 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 net income increase Group of answer choices $2,000 $5,000 $6,000 $10,000

Question

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 Net 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 net income increase  Group of answer choices $2,000  $5,000  $6,000  $10,000

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Question

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

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Sales	$800,000
Less variable expenses	300,000
Contribution margin	500,000
Less fixed expenses	400,000
Net income	$100,000