Stonebraker Corporation has provided the following contribution format income statement for sales of 9,000 units: $270,000 189,000 81,000 77,400 3,600 Sales Variable expenses Contribution margin Fixed expenses Net operating income 1. If sales increase to 9,040 units, what would be the estimated increase in net operating income? 2. If the variable cost per unit increased by $6, spending on advertising increased by $3,000 and unit sales increase by 19,200 units, what would be the estimated net operating income? 3. Estimate how many units must be sold to achieve a target profit of $26,100.

Stonebraker Corporation has provided the following contribution format income statement for sales of 9,000 units: $270,000 189,000 81,000 77,400 3,600 Sales Variable expenses Contribution margin Fixed expenses Net operating income 1. If sales increase to 9,040 units, what would be the estimated increase in net operating income? 2. If the variable cost per unit increased by $6, spending on advertising increased by $3,000 and unit sales increase by 19,200 units, what would be the estimated net operating income? 3. Estimate how many units must be sold to achieve a target profit of $26,100.

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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