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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-

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 >
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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