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The Following Is Addison Corporation's Contribution Format Income Statement for Last

question 50

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The following is Addison Corporation's contribution format income statement for last month:

 Sales $1,000,000 Less: variable expenses 700,000 Contribution margin 300,000 Less: fixed expenses 180,000 Operating income $120,000\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less: variable expenses } & \underline { 700,000 } \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & \underline { 180,000 } \\\hline \text { Operating income } & \$ 120,000 \\\hline\end{array} The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

-If sales increase by 100 units,by how much should operating income increase?

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