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a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated ne operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,500, and unit sales increase by 1,950 units, what would be the estimated net operating income?

a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated ne operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,500, and unit sales increase by 1,950 units, what would be the estimated net operating income?

FINANCIAL ACCOUNTING
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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Muzzillo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,250 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: $ 211,250 152,750 58,500 55,700 $ 2,800 a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,500, and unit sales increase by 1,950 units, what would be the estimated net operating income? Complete this question by entering your answers in the tabs below. Required a Required b If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? Note: Do not round intermediate calculations. Estimated net operating income
Transcribed Image Text:Muzzillo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,250 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: $ 211,250 152,750 58,500 55,700 $ 2,800 a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,500, and unit sales increase by 1,950 units, what would be the estimated net operating income? Complete this question by entering your answers in the tabs below. Required a Required b If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? Note: Do not round intermediate calculations. Estimated net operating income
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