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USE THE FOLLOWING INFORMATION FOR THE NEXT 2 QUESTIONS: XYZ Manufacturing produces a single product that sells for $100. Variable costs per unit equal $48.

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USE THE FOLLOWING INFORMATION FOR THE NEXT 2 QUESTIONS: XYZ Manufacturing produces a single product that sells for $100. Variable costs per unit equal $48. The company expects total fixed costs to be $56,000 for next year at the current sales level of 3,000 units. In an attempt to improve performance, management is considering 2 alternative actions. Each alterative action is to be evaluated separately. 18. Suppose management believes that a $20,000 increase in fixed expense will result in a considerable increase in sales. If sales increase by 500 units, what will be the increase in net income? a. $5,000 b. $5,500 c. $6,000 d. $6,500

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