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Assume the following Information: Sales Variable expenses Contribution margin Fixed expenses Amount $ 300,000 120,000 Per Unit $40 16 180,000 65,000 $24 $ 115,000
Assume the following Information: Sales Variable expenses Contribution margin Fixed expenses Amount $ 300,000 120,000 Per Unit $40 16 180,000 65,000 $24 $ 115,000 Net operating income If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the new net operating income is: Multiple Choice O $104,000. O $101,125
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