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Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units)$40,000 Variable expenses
Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (1,000 units)$40,000 Variable expenses 30,000 Contribution margin 10,000 Fixed expenses 7,000 Net operating income$3,000
If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:
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