Unit Contribution Margin Calculation

Lorri$$s income statement is as follows:

Sales$*$$$120,000$Less variable costs$(38,400)$Contribution margin$$81,600$Less fixed costs$(19,200)$Net income$$62,400$

$*8,000$ units sold

If sales increase by $1,600$ units, profits will:

Select one:

a$.$

Increase by $$19,200$

b$.$

Increase by $$8,000$

c$.$

Increase by $$12,480$

d$.$

Increase by $$16,320$