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Per Unit 6.00 3.00 3.00 Total Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 186,000 93,000 93,000 42,000 $ 51,000
Per Unit 6.00 3.00 3.00 Total Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 186,000 93,000 93,000 42,000 $ 51,000 Required (Consider each case independently) : 1. what is the revised net operating income if unit sales increase by 19%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the : number of units sold decreases by 5%? 4, what is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 12%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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