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QUESTION 2 The overall effect on the company's monthly net operating income: $ 4 000 units Sales 880 000 (4000 x 220) 352 000
QUESTION 2 The overall effect on the company's monthly net operating income: $ 4 000 units Sales 880 000 (4000 x 220) 352 000 (4000 x 88) 528 000 Less variable cost Contribution margin Less fixed cost Net operating income 425 000 $ 4400 units 919 600 (4 400x220-$11) 387 200 (4 400 x $88) 532 400 448 700 (425 000 + $23 700) $ 103 000 $ 83 700
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