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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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