Answer:
The correct answer is C.
Explanation:
Giving the following information:
Selling price $170
Variable expenses 34
Contribution margin $136
Fixed expenses are $202,000 per month.
The company is currently selling 2000 units per month.
New variable costs= 34+18= 52
New units sale= 2400
Increase in income= (136-18)*400= $47,200