Answer and Explanation:
The computation is shown below:
1.  
Selling Price = Sales ÷  Units Sold
Current Selling Price = $385,000 ÷  5500 
= $70
Now 
Expected Selling Price per unit = $70 + ($70× 10%) 
= $77
Now 
Expected Sales = 5500 × $77
 = $423,500
Now 
Net Income = Sales - Variable Cost - Fixed Cost
 = $423,500 - $250,000 - $94,000  
2.  
Sales = $385000
Variable cost = $385,000 × 56% = $215,600
Sales                     $385,000
Less: variable cost	-$215,600
Contribution Margin $169,400
Les: fixed cost          -$94,000
Net Income               $75,400
As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.