Problem:
Apple Corp sold 80,000 units providing a profit of $60,000. The unit margin of safety for the period was 40,000 units. If the company increases its ad expenses next period by $20,000, its sales will increase to 100,000 units.
Required:
Question: What will be the new net income next period?
A) $70,000
B) $80,000
C) $90,000
D) $30,000
E) None
Note: Be sure to show how you arrived at your answer.