Ignore first question and answer only 2 Per Unit$ 32.0019.00$ 13.e0TotalSales (7,200 units)Variable expenses$ 230,400136,800Contribution margin93,600Fixed expenses55,600$ 38,000Net operating incomeRequired:(Consider each case independently):1. What would be the revised net operating income per month if the sales volume increases by 50 units?2. What would be the revised net operating income per month if the sales volume decreases by 50 units?

The total fixed cost and variable cost per unit remains constant for each level of production.

Total Per Unit Sales (7,200 units) Variable expenses $ 230,400 136,800 93,600 $ 32.00 19.00 Contribution margin $ 13.00 Fixed expenses 55,600 Net operating income $ 38,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units?

Total Per Unit Sales (7,200 units) Variable expenses $ 230,400 136,800 93,600 $ 32.00 19.00 Contribution margin $ 13.00 Fixed expenses 55,600 Net operating income $ 38,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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