#equired: 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? . If the variable cost per unit increases by $6.00, spending on advertising increases by $3,700, and unit sales increase by 2,010 units, what would be the estimated net operating income?
#equired: 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? . If the variable cost per unit increases by $6.00, spending on advertising increases by $3,700, and unit sales increase by 2,010 units, what would be the estimated net operating income?
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 (3,350 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income.
Required:
$ 224,450
164,150
60,300
57,100
$ 3,200
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 $3,700, and unit sales increase by 2,010 units,
what would be the estimated net operating income?
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