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Montesdeoca Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (2,000 units) $ 120,000
Montesdeoca Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Sales (2,000 units) | $ 120,000 |
---|---|
Variable expenses | 72,000 |
Contribution margin | 48,000 |
Fixed expenses | 33,600 |
Net operating income | $ 14,400 |
Required: a. If sales decline to 1,900 units, what would be the estimated net operating income? b. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income? c. What is the break-even point in dollar sales?
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