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Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement: CM Income Statement Units Sold Per

Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement:

CM Income Statement

Units Sold Per Unit Total

Sales 2,000 $600 $1, 200,000

Variable Cost 2,000 $100 $200,000

Contribution Margin $1,000,000

Less Fixed Cost $900,000

Total Income Before Tax $100,000

if the company has a 9% increase in sales, its income before tax will increase by $_____________.

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