Sales (25,200 units) Variable expenses Contribution margin Total $ 226,800 136,080 Per Unit $ 9.00 5.40...

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Sales (25,200 units) Variable expenses Contribution margin Total $ 226,800 136,080 Per Unit $ 9.00 5.40 90,720 $ 3.60 52,920 Net operating income $ 37,800 Fixed expenses Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4,032 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, 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 30 cents per unit, and the number of units sold decreases by 9%? 1a. Net operating income 1b. Percent increase in unit sales % 1c. Percent increase in net operating income % 2. Net operating income (loss) 3. Net operating income 4. Net operating income Sales (25,200 units) Variable expenses Contribution margin Total $ 226,800 136,080 Per Unit $ 9.00 5.40 90,720 $ 3.60 52,920 Net operating income $ 37,800 Fixed expenses Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4,032 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, 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 30 cents per unit, and the number of units sold decreases by 9%? 1a. Net operating income 1b. Percent increase in unit sales % 1c. Percent increase in net operating income % 2. Net operating income (loss) 3. Net operating income 4. Net operating income

Answer rating: 100% (QA)

1a Revised Net Operating Income with Increased Sales Volume Original sales volume 25200 units Increase in sales volume 4032 units Revised sales volume 25200 4032 29232 units Revised Total Sales Revise... View the full answer