Question: Could you please explain the calculation for this question? 6. Assume the following information: Amount Per Unit Sales S 300.000 S 40 Variable expenses 120.000

Could you please explain the calculation for this question?

6. Assume the following information: Amount Per Unit Sales S 300.000 S 40 Variable expenses 120.000 16 Contribution margin 180,000 S24 Fixed expenses 65.000 Net operating incomes 115.000 If the variable expenses increase by Si 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: A) $115.375. B) $104.000. C) $101.125. D) SI11.125

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 1. Assume the following: 1. sales = $200,000 2. unit sales = 10,000 3. the contribution margin ratio = 40% 4. net operating income = $10,000 Given these four assumptions, which of the...

61.Assume the following (1) Total sales = $135,000 (2) the contribution margin ratio = 40%, and (3) total fixed expenses = $45,000. Given these three assumptions, the margin of safety is: Multiple...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 52,000 Net operating income $ 135,500 The dollar...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 77,000 Net operating income $ 103,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 47,000 Net operating income $ 133,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 124,000 Net operating income $ 56,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 62,000 Net operating income $ 118,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 41,000 Net operating income $ 139,000 If the...

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Yixed expenses 41 Net operating income $ 139, In the variable...

Suppose we start recording the population change at the "start time" to = 0, and birth and death rates are given by b(t) = 2 + sin(t + /4) and d(t) = 2 = cos(t + /4). (a) What is the earliest time T>...

The block of mass m sliding without friction along the looped track shown in Fig. 6-39 is to remain on the track at all times, even at the very top of the loop of radius r. (a) In terms of the given...

A customer of Hanoi Sharpeners alleges that Hanol's new razor sharpener had a befect that resulted in serious injury to the customer. Hanol's legal counsel believes the cuatomer has a 5 1 % chance of...

The following transactions occurred during July for Hurley Services: 1 Received $1,800 cash for photography services provided to customer during the month. 2 Received $1,500 cash from Barbara Blanc,...