Total | Per Unit
Sales (44,000 units)$440,000 $10.00
Variable expenses 308,000 7.00
Co...
Business, 10.02.2021 07:50 ceceallen2003
Total | Per Unit
Sales (44,000 units)$440,000 $10.00
Variable expenses 308,000 7.00
Contribution margin 132,000 $3.00
Fixed expenses 43,000
Net operating income$89,000
Required:(Consider each case independently): 1. What is the revised net operating income if unit sales increase by 20%?
2. What is the revised net operating income if the selling price decreases by $1.50 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 $1.50 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 2%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 14%
Answers: 3
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