Question
A corporations contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,400 units) $ 285,600 $ 34.00 Variable
A corporations contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,400 units) $ 285,600 $ 34.00 Variable expenses 159,600 19.00 Contribution margin 126,000 $ 15.00 Fixed expenses 56,000 Net operating income $ 70,000 Required: (Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 50 units?
2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
3. What would be the revised net operating income per month if the sales volume is 7,400 units?
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