The Following Income Statement Was Produced When Volume of Sales

Multiple Choice

The following income statement was produced when volume of sales was at 400 units. $$\begin{array} { | l | l r | } \hline \text { Sales Revenue } & \$ & 2,000 \\\hline \text { Variable Cost } & & 1,200 \\\hline \text { Contribution Margin } & \$ & 800 \\\hline \text { Fixed Cost } & & 300 \\\hline \text { Net Income } & \$ & 500 \\\hline\end{array}$$ If volume reaches 500 units, net income will be:

A) $625
B) $1,800
C) $700
D) None of these