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Mil-91037 Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Total $ 351,000 234,000 Per Unit $ 9.00 6.00 Contribution margin 117,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 67,000 What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? $33,538 $106,156

Mil-91037 Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Total $ 351,000 234,000 Per Unit $ 9.00 6.00 Contribution margin 117,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 67,000 What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? $33,538 $106,156

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...
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Ashvinbhai 

Mil-91037 Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Total $ 351,000 234,000 Per Unit $ 9.00 6.00 Contribution margin 117,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 67,000 What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? $33,538 $106,156 $93,972 $ 89,230
Transcribed Image Text:Mil-91037 Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Total $ 351,000 234,000 Per Unit $ 9.00 6.00 Contribution margin 117,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 67,000 What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? $33,538 $106,156 $93,972 $ 89,230
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