Assume the following information:

Amount Per Unit

Sales $ 300,000 $ 40

Variable expenses 120,000 16

Contribution margin 180,000 $ 24

Fixed expenses 60,000

Net operating income $ 120,000

If unit sales increase by 10%, then the best of estimate of the new net operating income is:

Multiple Choice

• $132,000.

• $138,000.

• $150,000.

• $140,000.