Question
Canuck Company sells 25,000 units, for a total sales of $450,000. The variable expenses are $250,000 and the fixed expenses are $85,000. What is the
Canuck Company sells 25,000 units, for a total sales of $450,000. The variable expenses are $250,000 and the fixed expenses are $85,000. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 80 cents per unit, and the number of units sold decreased by 8%?
A) $145,000
B) $132,000
C) $122,000
D) $155,000
Canuck Company sells 25,000 units, for a total sales of $450,000. The variable expenses are $250,000 and the fixed expenses are $85,000. What is the revised net operating income if the selling price decreases by $2.00 per unit and the number of units sold increases by 15%?
A) $88,000
B) $86,600
C) $87,500
D) $92,000
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