Sutton Company Produces Flash Drives for Computers, Which It Sells

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 700 drives were sold.Fixed costs for April were $4 per unit for a total of $2,800 for the month.How much does Sutton's operating income increase for each $1,000 increase in revenue per month?

A) $700
B) $500
C) $14,000
D) Not enough information to determine the answer.