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Sales (41,000 units) $246,000 $6.00 Variable expenses 123,000 3.00 Contribution margin 123,000 $3.00 Fixed expenses 42,000 Net operating income $ 81,000 The selling price decreases

Sales (41,000 units) $246,000 $6.00
Variable expenses 123,000 3.00
Contribution margin 123,000 $3.00
Fixed expenses 42,000
Net operating income $ 81,000

The selling price decreases by $1.40 per unit, and the number of units sold increases by 22%.

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