bok int int ences Sales (24,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 221,400 132,840 88,560 51, 660 $ 36,900 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4,428 units: a. What is the revised net operating income? 1a. Net operating income 1b. Percent increase in unit sales Per Unit $9.00 5.40 $ 3.60 b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 22%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 8%? 1c. Percent increase in net operating income 2. Net operating income (loss) 3. Net operating income 4. Net operating income $ 52,841 18 % 43 %

Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4.428 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1,10 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 8%