Current Attempt in Progress

Carol is helping her company consider a change in its CVP relationship to increase profitability. Currently, the company is selling

$13,000$ units, generating $$69,500$ in operating income. The contribution margin is $$27$ per unit, while total variable costs are

$$299,000.$

What amount of fixed costs does the company currently incur?

Fixed costs $,$$

If it increases its selling price by $10\%$ while expecting volume to drop by just $5\%,$ will the company achieve its goal?

New operating income

$

The company

its goal.

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