Assume Mussa Company Has the Following Information Available If Fixed Costs Increase by $200,000,what Is the Expected Operating

Multiple Choice

Assume Mussa Company has the following information available:
$\begin{array} { l } \text {Selling price per unit }&\$100\\ \text {Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$420,000\\ \text {Expected sales per year (units) }&20,000\\\end{array}$

If fixed costs increase by $200,000,what is the expected operating income?

A) $280,000
B) $480,000
C) $680,000
D) $1,380,000