Stuart Company manufactures and sells Calculators. The relevant cost and revenue data are provided below.
					Revenue/Cost/Income
Sales volume		(Sold	42,000	units)	$420,000
Variable costs					$294,000
Annual fixed costs					$49,000
Net operating income					$77,000
Required: (Treat each case INDEPENDENTLY. Each case represents a change from the base case given above)
Part A)	Assume that the selling price increases by					$1.20	per unit
	Annual fixed costs increase by					$7,000
	Number of units sold decreases by					4%
	Calculate the revised net operating income (2 points)
Part B)	Assume that the selling price per unit increases by					10%
	Variable cost increases by					$0.40	per unit
	Number of units sold decreases by					15%
	Calculate the revised net operating income (2 points)