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.

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.

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