Assume the following information:

	Amount	Per Unit
Sales	$ 300,000	$ 40
Variable expenses	120,000	16
Contribution margin	180,000	$ 24
Fixed expenses	105,000
Net operating income	$ 75,000

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

$84,000.

$87,600.

$152,600.

$94,500.