Question: Please answer. Thank you! ABC Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (40, 000 units)
Please answer. Thank you!

ABC Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (40, 000 units) $320, 000 $8.00 Variable expenses 200, 000 5.00 Contribution margin 120, 000 $3.00 Fixed expenses 46, 000 Net operating income $ 74, 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 $1.40 per unit and the number of units sold increases by 16%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
