Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Enterprise LLC has provided the following contribution format income statement for the sales of 5,000 units: $ Sales Variable costs Contribution margin Fixed costs Net
Enterprise LLC has provided the following contribution format income statement for the sales of 5,000 units: $ Sales Variable costs Contribution margin Fixed costs Net operating income 375,000 275,000 100,000 68,000 32,000 $ Answer the following two questions related to the data above for Enterprise LLC: 1) If the number of units sold incrases by 3,000 units, sales price decreases $2 per unit, variable costs increase $3 per unit and fixed costs decrease $5,000, what would be the resulting net operating income? 2) Estimate how many units must be sold to achieve a target profit of $150,000. Note: Be sure to show your calculations in the file you submit for grading
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started