Reynold Enterprises sells a single product for $25. The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales. The company's net operating income will increase by $5 if one more unit is sold. True False 2.Sensabaugh Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. sales (1800 units) $91,800 Variable expenses 59,400 Contribution margin 32,400 Fixed expenses 27,000 Net operating income 5,400 If the company sells 1,600 units, its total contribution margin should be closest to: a $28,800 b $32,400 c $22,200 d $4,800 3.If two companies have the same total sales and total expenses and make the same product, the volatility of net operating income with changes in sales will tend to be greater in the company with a higher proportion of fixed expenses in its cost structure. True False