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Total $ 220,000 88,000 Sales (44,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Per Unit $5.00 2.00 $ 3.00 132,000 47,000 $
Total $ 220,000 88,000 Sales (44,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Per Unit $5.00 2.00 $ 3.00 132,000 47,000 $ 85,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 20%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income 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%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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