Angel Toys Is a Producer of Tiny Dolls for Children

Angel Toys is a producer of tiny dolls for children.Following is information about its revenue and cost structure: $\begin{array}{ll}\text { Selling price per doll }&\$8.00\\\text { Variable costs per doll: }\\\text { Production (manufacturing costs) } & \$ 1.20 \\\text { Selling and administration (non-manufacturing costs) }&\$ 0.40\\\text { Total fixed costs: }\\\text { Production (manufacturing costs) } & \$ 40,000 \text { per year } \\\text { Selling and administration (non-manufacturing costs) } & \$ 32,000 \text { per vear }\end{array}$ Assume that the current sales level is 14,000 dolls.What impact would a 10% increase in sales have on income?

A) Income would increase by 10%
B) Income would increase by about 19%
C) Income would increase by $11,200
D) Income would increase by about 51%