Question
Sales (43,000 units) Variable expenses Contribution margin Total $ 430,000 301,000 Per Unit $10.00 7.00 129,000 $ 3.00 Fixed expenses 49,000 Net operating income
Sales (43,000 units) Variable expenses Contribution margin Total $ 430,000 301,000 Per Unit $10.00 7.00 129,000 $ 3.00 Fixed expenses 49,000 Net operating income $ 80,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 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 6%? 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 11%? 1. Net operating Income- 2. Net operating Income 3. Net operating income 4. Net operating income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started