Question: Company's contribution format income statement for the most recent month is shown below: TotalPer UnitSales (42,000 units)$420,000$10.00Variable expenses294,0007.00Contribution margin126,000$3.00Fixed expenses40,000Net operating income$86,000 Required: (Consider each

Company's contribution format income statement for the most recent month is shown below:

TotalPer UnitSales (42,000 units)$420,000$10.00Variable expenses294,0007.00Contribution margin126,000$3.00Fixed expenses40,000Net operating income$86,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 13%?

2.What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 24%?

3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 4%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 14%?

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