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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
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$ 56,664
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$ 104,800
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$ 114,576
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$ 92,128
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