Information Concerning Lynch Corporation's Product a Follows:
Sales  &Nbsp; &Nbsp; $\$ 400,000$

Multiple Choice

Information concerning Lynch Corporation's Product A follows:
Sales                                      $\$ 400,000$
Variable costs                          300,000
Fixed costs                              50,000

Assuming that Lynch increased sales of Product A by 25 percent,what should the profit from Product A be?

A) $ 50,000
B) $ 62,500
C) $ 75,000
D) $170,000