This question is sehjective.

Pedelleention has provided the following contribution format Income statement. Af questions concern eifuntions that are within the range.

Sales $(3,000$ units$)$

$ $180,000$

Variable expenses

$126,00054,000$

Contribution margin

Fixed expenses

Net operating income

$52,200$

$$1,800$

Required:

a$.$ If the selling price increases by $$4$ per unit and the sales volume decreases by $300$ units, what would be the estimated net operating income?

b$.$ If the variable cost per unit increases by $$6,$ spending on advertising increases by $$3,000,$ and unit sales increase by $1,800$ units, what would be the estimated net operating income?