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The management of Davos-62538 Inc. reported the following contribution format income statement for last month: Total Per Unit Sales (44,000 units) $ 352,000 $ 8.00

The management of Davos-62538 Inc. reported the following contribution format income statement for last month:

Total Per Unit
Sales (44,000 units) $ 352,000 $ 8.00
Variable expenses 220,000 5.00
Contribution margin 132,000 $ 3.00
Fixed expenses 47,000
Net operating income $ 85,000

How much net operating income does Davos-62538 Inc. expect to earn 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 7%?

multiple choice

  • $ 56,664

  • $ 104,800

  • $ 114,576

  • $ 92,128

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