10. Rihanna, Inc. sells watches for $100 per watch. The variable expenses are $40 per unit, and the fixed

expenses total $35,000 per period. By how much will net operating income change if watch sales are expected

to increase by $10,000?

A. $4,000

B. $3,000

C. $24,000

D. $6,000

11. In the above question, what is the breakeven point for Rihanna, Inc. in sales dollars?

A. $22,558

B. $43,555

C. $45,000

D. $58,333