6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income

 $2,430

Explanation:

Sales were based on a volume of 1,000 units.

Previous sales price = 105,000/1,000 = $105

Previous Sales volume = 100

Variable expenses = 73,500/1,000 = $73.50

New sales volume = 1,000 - 100 = 900

New sales price = 105 + 2 = $107

Net Operating Income = Sales - Varible Costs - Fixed costs

= (900 * 107) - ( 73.50 * 900) - 27,720

= 96,300 - 66,150 - 27,720

= $2,430

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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