Given the Following Information What Would Expected Net Income Be If the Company Experienced

Multiple Choice

Given the following information:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 5,000 \\\hline \text { Fixed Expenses } & 2,000 \\\hline \text { Variable Expenses } & 1,750 \\\hline\end{array}$$ What would expected net income be if the company experienced a 10 percent increase in fixed costs and a 10 percent increase in sales volume?

A) $1,750.
B) $1,550.
C) $1,250.
D) $1,375.