Question: Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 Per Unit $ 40 16 180,000

Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net

Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 Per Unit $ 40 16 180,000 60,000 $ 120,000 $ 24 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the new net operating income is: Multiple Choice $112.500. $106,125 $121,875.

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