The management of Davos-15946 Inc. reported the following contribution format income statement for last month:Sales (42,000 units)Variable expensesTotal$ 294,000168,000Per Unit$ 7.004.00Contribution margin126,000$ 3.00Fixed expenses:44,000$ 82,000Net operating incomeHow much net operating income does Davos-15946 Inc. expect to earn if the selling price per unit increases by 20%, variableexpenses increase by 30 cents per unit, and the number of units sold decreases by 9%?O $ 113,580O$ 47,476O$ 112,702O$ 105,940

Operating income refers to the earnings made by the entity after deducting the total operating…

Sales (42,000 units) Variable expenses $ 294,000 168,000 $ 7.00 4.00 Contribution margin Fixed expenses 126,000 $ 3.00 44,000 Net operating income $ 82,000 How much net operating income does Davos-15946 Inc. expect to earn if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%? O$ 113,580 O$ 47,476 O$ 112,702 O$ 105,940

Sales (42,000 units) Variable expenses $ 294,000 168,000 $ 7.00 4.00 Contribution margin Fixed expenses 126,000 $ 3.00 44,000 Net operating income $ 82,000 How much net operating income does Davos-15946 Inc. expect to earn if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%? O$ 113,580 O$ 47,476 O$ 112,702 O$ 105,940

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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