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Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 320,000 224,000 96,000 42,000 Per Unit $10.00 7.00 $ 3.00 $
Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 320,000 224,000 96,000 42,000 Per Unit $10.00 7.00 $ 3.00 $ 54,000 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 22%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 4%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 9%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Not operating income
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