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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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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