Sunshine Company Manufactures a Single Product

Multiple Choice

Sunshine Company manufactures a single product.In the prior year,the company had sales of $90,000,variable costs of $50,000,and fixed costs of $30,000.Sunshine expects its cost structure and sales price per unit to remain the same in the current year,however total sales are expected to increase by 20 percent.If the current year projections are realized,net income should exceed the prior year's net income by:

A) 100 percent.
B) 80 percent.
C) 20 percent.
D) 50 percent.