Decription Sales Variable Cost (VC) Contribution Margin per unit % of sales $500.00 $125.00 25.0% 700 $/unit % of sales 100.0% $ 350,000 87,500 700 $375.00 75.0% 262,500 Fixed Cost (FC) 150,000 Net Operating Income (NOI) 112,500 NOI % Sales 32.1% Original assumptions 2. Sell price and VC increase 10% Decription per unit % of sales 700 $/unit % of sales Sales $ 500.00 100.0% $ 350,000 Variable Cost (VC) $ 125.00 25.0% 87,500 Contribution Margin $375.00 75.0% 262,500 Fixed Cost (FC) 150,000 Net Operating Income (NOI) 112,500 NOI % Sales 32.1% Original assumptions 3.Cut FC by 10% Decription Sales per unit % of sales 700 $/unit % of sales 700 $500.00 100.0% $ 350,000 Variable Cost (VC) $125.00 25.0% 87,500 Contribution Margin $375.00 75.0% 262,500 Fixed Cost (FC) 150,000 Net Operating Income (NOI) 112,500 NOI % Sales 32.1% 700