  Hello,I have the following question.  Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units.Revenues \$170,500Cost of Goods sold (\$10,000 + \$2.75/unit) 52,625Gross Profit \$117,875Operating expenses   Selling (\$2,450 + \$1.15/unit)20,275 Administration (\$5,000 + \$0.45/unit)11,975Operating Income \$85,625Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by \$13,000.  Do not round intermediate calculations. Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by \$10,000.  Do not round intermediate calculations.

Question

Hello,

I have the following question.

Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units.

 Revenues \$170,500 Cost of Goods sold (\$10,000 + \$2.75/unit) 52,625 Gross Profit \$117,875 Operating expenses Selling (\$2,450 + \$1.15/unit) 20,275 Administration (\$5,000 + \$0.45/unit) 11,975 Operating Income \$85,625

Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by \$13,000.  Do not round intermediate calculations.

Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by \$10,000.  Do not round intermediate calculations.

Step 1

Calculate total variable expense per unit, total fixed costs, and selling price per unit

Step 2

D1. Determine the firm\\'s operating income, if total revenue increases by \$13,000.

Step 3

D2. Determine the firm\'s operating income, i...

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