Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume the following information:
Amount | Per Unit | |||||||||
Sales | $ | 300,000 | $ | 40 | ||||||
Variable expenses | 120,000 | 16 | ||||||||
Contribution margin | 180,000 | $ | 24 | |||||||
Fixed expenses | 111,000 | |||||||||
Net operating income | $ | 69,000 | ||||||||
If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is:
Multiple Choice
-
$77,400.
-
$82,200.
-
$153,200.
-
$88,500.
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