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Sales .................................. 10,000 units Selling price ...................... $50 per unit Variable expense ............... $35 per unit Fixed expense .................... $180,000 If the company sales increased

Sales .................................. 10,000 units

Selling price ...................... $50 per unit

Variable expense ............... $35 per unit

Fixed expense .................... $180,000

  1. If the company sales increased by $ 1,00,000 and Advertising expenditure is $ 10,000 then how much net operating income will be increased?
  2. Calculate the DOL and if sales increased by 10% then how much % of profit will be increased.

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