Question: Assume the following information: Sales: Variable expenses Contribution margin Fixed expenses Net operating income Amount Per Unit $ 40 $ 300,000 120,000 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 Per Unit $ 40 $ 300,000 120,000 16. 180,000 $ 24 105,000 $ 75,000 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 $94,500. $87,600.

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