Percent Per Unit of Sales Variable expenses) Selling price Contribution margin 5 130 78 5.52 100 Fixed expenses are $86,000 per month and the company is selling 2.800 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher components that increase the variable expense by S6 per unit and increase unit sales by 15% 2-b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company quality components that increase the variable expense by $6 per unit and increase unit sales by 15%. uses higher-
Percent Per Unit of Sales Variable expenses) Selling price Contribution margin 5 130 78 5.52 100 Fixed expenses are $86,000 per month and the company is selling 2.800 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher components that increase the variable expense by S6 per unit and increase unit sales by 15% 2-b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company quality components that increase the variable expense by $6 per unit and increase unit sales by 15%. uses higher-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selling price
Variable expenses
Contribution margin
Percent
Per Unit of Sales
$130
78
552
100%
68
Fixed expenses are $86,000 per month and the company is selling 2,800 units per month.
2-a. Refer to the original data. How much will not operating income increase (decrease) per month if the company uses higher
components that increase the variable expense by $6 per unit and increase unit sales by 15%
2-b. Should the higher-quality components be used?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Req2A
Req 28
Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-
quality components that increase the variable expense by $6 per unit and increase unit sales by 15%.
Net operating income
increases
$21 840
Req 20 >
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