Question
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
(Round "Per Unit" calculations to 2 decimal places.)
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,200, and unit sales increase by 140 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
8. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.)
9. What is the break-even point in dollar sales?
10. How many units must be sold to achieve a target profit of $8,100?
(Round intermediate calculations to 2 decimal places.)
11. What is the margin of safety in dollars? What is the margin of safety percentage?
12. What is the degree of operating leverage? (Round your answer to 2 decimal places.}
13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)
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