Question
Falcon Company produces and sells a single product. The company would like to project its net operating income (NOI) for the coming year assuming an
Falcon Company produces and sells a single product. The company would like to project its net operating income (NOI) for the coming year assuming an increase in unit sales but with price, variable cost per unit, and total fixed cost remaining the same. For the past year, the company reported the following results:
Sales ........................$548,000
Margin of Safty...........$223,000
Fixed cost..................$188,500
If the company projects a 25% increase in unit sales, its NOI for the coming period would be projected to be closest to: A. $208,800 B. $390,525 C. $137,000 D. $397,300 E.None of the above
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