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Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 336,000 210,000 126,000 47,000 $ 79,000 Per Unit $ 8.00 5.00

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Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 336,000 210,000 126,000 47,000 $ 79,000 Per Unit $ 8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

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