Question: Sales (7,400 units) $ 222,000 $ 30.00 Variable expenses 140,600 19.00 Contribution margin 81,400 $ 11.00 Fixed expenses 55,300 Net operating income $ 26,100 Required:

Sales (7,400 units) $ 222,000 $ 30.00 Variable expenses 140,600 19.00 Contribution margin 81,400 $ 11.00 Fixed expenses 55,300 Net operating income $ 26,100 Required: (Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 70 units?

2. What would be the revised net operating income per month if the sales volume decreases by 70 units?

3. What would be the revised net operating income per month if the sales volume is 6,400 units?

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