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Total Per Unit Sales (41,000 units) $ 287, 000 $ 7. 00 Variable expenses 164, 000 4.00 Contribution margin 123, 000 $ 3.00 Fixed expenses

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Total Per Unit Sales (41,000 units) $ 287, 000 $ 7. 00 Variable expenses 164, 000 4.00 Contribution margin 123, 000 $ 3.00 Fixed expenses 42,000 Net operating income $ 81,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, 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 10 cents per unit, and the number of units sold decreases by 13%? 1 . Net operating income 2. Net operating income 3 Net operating income 4. Net operating income $ 86,412

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