QUESTIONS 1 THROUGH 4 ARE BASED ON THE FOLLOWING INFORMATION:

Volunteers Company had the following income statement for the most recent year:

Sales (15,000 units)	Total $150,000	Per unit $10
Less: Variable expenses	90,000	6
Contribution margin	60,000	$ 4
Less: Fixed expenses	50,000
Net income	$ 10,000

1. What will be the operating income, if sales volume increases by 15%?

A. $19,000

B. $11,500

C. $20,450

D. $18,350

2. Refer to the original data, what will be the operating income (loss), if the selling price decreases by $3 and the sales volume increases by 50%?

A. $22,500

B. ($27,500)

C. $29,750

D. ($32,850)

3. Refer to the original data, volunteers breakeven point in units is

A. 18,000

B. 4,400

C. 11,000

D. 12,500

4. Refer to the original data, how many units of the product must be sold for Volunteers to realize an operating income of $30,000?

A. 19,000

B. 20,000

C. 22,000

D. 23,000