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Below is the variable income statement for Frozen: Sales (10,000 units) 600,000 Less: Variable costs 300,000 Contribution Margin 300,000 Less: Fixed Costs 200,000 Operating
Below is the variable income statement for Frozen: Sales (10,000 units) 600,000 Less: Variable costs 300,000 Contribution Margin 300,000 Less: Fixed Costs 200,000 Operating Income 100,000 If the selling price drops 10% in order to sell 20% more units. What would the new operating income be? b) The company increased its sale price by 5% and as a consequence, it sells 10% fewer units. What would be the new operating income?
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