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1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
2. If the variable cost per unit increases by $1, spending on advertising increases by $1,850, and unit sales increases by 270 units; what would be the net operating income?
3. What is the break-even point in unit sales?
4. How many units must be sold to achieve a target profit of $22,800?
5. What is the margin of safety in dollars? What is the margin of safety percentage?
6. Using the degree of operating leverage, what is the estimated percent increases in net operating income of a 5% increase in unit sales?
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