(Cost and revenue behavior) The following financial data have been deter-mined from analyzing the records of Tim’s Brake Co. (a one-product firm):
Contribution margin per unit
$ 50
Variable cost per unit
42
Annual fixed cost
$180,000
How does each of the following measures change when product volume goes up by one unit at Tim’s Brake Co?
a. Total revenue
b. Total cost
c. Income before tax