Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The CVPSenar-627 companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 units) $ 296,000 $ 8.00
The CVPSenar-627 companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |||||
Sales (37,000 units) | $ | 296,000 | $ | 8.00 | ||
Variable expenses | 185,000 | 5.00 | ||||
Contribution margin | 111,000 | $ | 3.00 | |||
Fixed expenses | 50,000 | |||||
Net operating income | $ | 61,000 | ||||
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 12%?
Multiple Choice
-
$90,008
-
$87,481
-
$97,230
-
$100,583
Step 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