The following results were achieved in the last accounting period:

Sales 2,500 units Break even point800 units, and contribution Margin per unit $20

The company expects to make and sell an additional 1,000 units in the next accounting period. If variable cost per unit, selling price per unit and total fixed costs remain unchanged, the effect on pre tax profit will be an increase of

a.

$16,000

b.

$15,000

c.

$25,000

d.

$10,000

e.

$20,000