Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The answers are at the bottom of the picture, but I do not know how to do the work for it. please help me understand
The answers are at the bottom of the picture, but I do not know how to do the work for it. please help me understand the work.
Below is the contribution formatted income statement from White Stone Corporation. Record your final answer on the blank lines. Sales (10,000 units) $270,000 Variable expenses 200,000 Contribution margin 70,000 Fixed expenses 37,400 Net operating income $32,600 1. If sales increase to 10,050 units, what would be the estimated increase in net operating income? 2. If the variable cost per unit increases by $5, spending on advertising increases by $5,000, and unit sales increases by 10,200 units, what would be the estimated net operating income/loss? 3. Estimate how many units must be sold to achieve a target profit of $46,100 1. Increase by $1,630,000 2. Income of $3,253,000 3. Around 7500 units Below is the contribution formatted income statement from White Stone Corporation. Record your final answer on the blank lines. Sales (10,000 units) $270,000 Variable expenses 200,000 Contribution margin 70,000 Fixed expenses 37,400 Net operating income $32,600 1. If sales increase to 10,050 units, what would be the estimated increase in net operating income? 2. If the variable cost per unit increases by $5, spending on advertising increases by $5,000, and unit sales increases by 10,200 units, what would be the estimated net operating income/loss? 3. Estimate how many units must be sold to achieve a target profit of $46,100 1. Increase by $1,630,000 2. Income of $3,253,000 3. Around 7500 unitsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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