Question
Lybra Corporation has provided the following contribution format income statement. Answer each question independently based on the original data: Sales (5,000 units) $ 150,000 Variable
Lybra Corporation has provided the following contribution format income statement. Answer each question independently based on the original data:
Sales (5,000 units)
$ 150,000
Variable expenses
90,000
Contribution margin
60,000
Fixed expenses
40,000
Net operating income
$ 20,000
e. If the variable cost per unit increases by $3, spending on advertising increases by $5,000, and unit sales increase by 400 units, what would be the estimated net operating income?
Unit contribution margin
Unit sales
Total Contribution margin
Fixed expenses
Net operating income
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