Answer: A. 462000 increase
As the question is not complete, So I have solved the question according to the correct question which is attached in the attachment.
Step-by-step explanation:
Correct question is attached in the attachment.
Calculation: 26 – (9+6+5) = 6
Now, 6*77000 = 462000
The income is Revenue minus cost, so here the price per unit is $26 and cost includes direct material, direct labor cost, and overhead.
The income is calculated by subtracting $20 (9+6+5) from $26 which equal to $6.
The total increase in income would be $462000.
Since, the customer is paying for variable charges per unit, so we don’t need to add the transportation charges.