Question: Assume the following information: Per Unit $40 16 Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $300,000 120,000 180,000 72,000 $108,000 $24
Assume the following information: Per Unit $40 16 Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $300,000 120,000 180,000 72,000 $108,000 $24 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $127,500 $117,300 $149,300. $120,300
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