Question

Total Per Unit Sales (32,000 units) $256,000 $8.00 Variable Expenses 160,000 5.00 Contribution Margin 96,000 $3.00 Fixed Expenses 50,000 Net Operating Income $46,000 1. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 4%? Net Operating Income = ? 2. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 8%? Net Operating Income = ?

          Total
Per Unit
Sales (32,000 units)
$256,000
$8.00
Variable Expenses
160,000
5.00
Contribution Margin
96,000
$3.00
Fixed Expenses
50,000
Net Operating Income
$46,000
1. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 4%? 
Net Operating Income = ?
2.  What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 8%?
Net Operating Income = ?

Added by Jennifer J.

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