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PCLife , distributes high quality laptop batteries that sells for $30 per unit. variable expenses are $21 per unit and fixed expenses total $150,000 per
PCLife , distributes high quality laptop batteries that sells for $30 per unit. variable expenses are $21 per unit and fixed expenses total $150,000 per year .it's operating results for last year were as follows: sales $ 600000 variable expenses $ 420000 contributions margin $ 180,000 fixed expenses $ 150,000 net operating income $ 30, 000 required: A) answer the question with independently based on the original data . assume this years unit sales increase by 3,000 units and $90,000 respectively. if the fixed expenses do not change how much will net operating income increase? B ) answer the question with independently based on the original data Assume the CEO expects this years unit sales to increase by 5% . using the degree of operating leverage from last year what percentage increases income in net operating income will the company realise this year? C) answer the question with independently based on the original data. the sales manager is convinced 5% reduction in the selling price, combined with a $ 30,000 increase in advertising, would increase this years unit by 25%. if the sale manager is right , what would be this years net operating income? year
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