Amount Per Unit Sales Variable expenses Contribution margin $300,000 $40 120,000 16 180,000 $24 Fixed expenses 41,000 Net operating income $139,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of th Multiple Choice $137,600. $125125. $144,725, $139,375.

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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Question
100%
Amount
$300,000
120,000
Per Unit
Sales
$40
Variable expenses
16
Contribution margin
180,000
$24
Fixed expenses
41,000
Net operating income
$139,000
If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the
Multiple Choice
$137.600.
$125125.
$144,725,
$139.375.
Transcribed Image Text:Amount $300,000 120,000 Per Unit Sales $40 Variable expenses 16 Contribution margin 180,000 $24 Fixed expenses 41,000 Net operating income $139,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the Multiple Choice $137.600. $125125. $144,725, $139.375.
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