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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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