Question: Sales (43,000 units) Variable expenses Contribution margin Total $ 430,000 301,000 Per Unit $10.00 7.00 129,000 $ 3.00 Fixed expenses 49,000 Net operating income
Sales (43,000 units) Variable expenses Contribution margin Total $ 430,000 301,000 Per Unit $10.00 7.00 129,000 $ 3.00 Fixed expenses 49,000 Net operating income $ 80,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating income if the selling price decreases by $1.30 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 $1.30 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 11%? 1. Net operating Income- 2. Net operating Income 3. Net operating income 4. Net operating income
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