Selling price Variable expenses Contribution margin . Per Unit of Sales $ 80 52 100% 65...

Transcribed Image Text:

Selling price Variable expenses Contribution margin . Per Unit of Sales $ 80 52 100% 65 $ 28 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses high components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 25%. Net operating income by Selling price Variable expenses Contribution margin . Per Unit of Sales $ 80 52 100% 65 $ 28 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses high components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 25%. Net operating income by

Answer rating: 100% (QA)

To calculate the change in net operating income we can use the following formula Change in Net Opera... View the full answer