Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) $ 300,000 Variable expenses 240,000 Contribution margin 60,000 Fixed expenses 59,000 Net operating income $ 1,000 If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to:

$13,800

Explanation:

Calculation for what the net operating income would be closest to:

First step is to calculate the Unit contribution margin

Selling price per unit $50

($300,000 ÷ 6,000 units)

Less Variable cost per unit $40

($240,000 ÷ 6,000 units)

Unit contribution margin $10

Selling price $53 per unit

($50 per unit + $3 per unit)

Variable cost per price $40 per unit

Unit contribution margin $13 per unit

Now let calculate the net operating income

Contribution margin $72,800

(Unit contribution margin $13 per unit*Unit sales(6,000 units − 400 units)

Less Fixed expenses 59,000

Net operating income$13,800

Therefore the net operating income would be closest to:$13,800

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; decentralized;