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GPBInchasthefollowingContributionMarginstyleincomestatementatasalesvolumeof 1,000units: Total$ Sales $40,000 VC 30,000 CM $10,000 FC 10,000 NetOpInc $0 REQUIRED: i)Youwillincreasethesalespriceperunitby$8,butsalesvolumeisexpectedtodrop300units. FixedCostswillalsoincreaseanet$100. ComputetheNetOp Incomeunderthisnewscenario. Doyou recommend managementproceedwiththischange?

GPBInchasthefollowingContributionMarginstyleincomestatementatasalesvolumeof

1,000units:

Total$

Sales	$40,000
VC	30,000
CM	$10,000
FC	10,000
NetOpInc	$0

REQUIRED:

i)Youwillincreasethesalespriceperunitby$8,butsalesvolumeisexpectedtodrop300units. FixedCostswillalsoincreaseanet$100. ComputetheNetOp Incomeunderthisnewscenario. Doyou recommend managementproceedwiththischange?

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