9

Assume the following information:

	Amount	Per Unit
Sales	$ 300,000	$ 40
Variable expenses	120,000	16
Contribution margin	180,000	$ 24
Fixed expenses	94,000
Net operating income	$ 86,000

If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is:

Multiple Choice

• $151,500.

• $105,500.

• $96,100.

• $97,500.