Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Multiple Choice $84,000. $87,600. $152,600. $94,500. Amount $ 300,000 120,000 180,000 105,000 $ 75,000 Per Unit $ 40 16 $24 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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume the following information:
Sales
Variable expenses
Contribution margin
Fixed expenses
$87,600.
$152,600.
$94,500.
Net operating income
Multiple Choice
$84,000.
Amount
$ 300,000
120,000
180,000
105,000
$ 75,000
Per Unit
$ 40
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:
16
$24
Transcribed Image Text:Assume the following information: Sales Variable expenses Contribution margin Fixed expenses $87,600. $152,600. $94,500. Net operating income Multiple Choice $84,000. Amount $ 300,000 120,000 180,000 105,000 $ 75,000 Per Unit $ 40 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: 16 $24
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