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The management of Davos-20420 Inc. reported the following contribution format income statement for last month: Sales (34,000 units) Variable expenses Total $ 272,000 170,000
The management of Davos-20420 Inc. reported the following contribution format income statement for last month: Sales (34,000 units) Variable expenses Total $ 272,000 170,000 Per Unit $ 8.00 5.00 Contribution margin Fixed expenses Net operating income 102,000 45,000 $ 57,000 $ 3.00 How much net operating income does Davos-20420 Inc. expect to earn if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 10%? $ 68,220 $ 21,470 $ 68,220 $ 83,428
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