Total Per Unit Sales (7,200 units) Variable expenses $ 230,400 136,800 93,600 $ 32.00 19.00 Contribution margin $ 13.00 Fixed expenses 55,600 Net operating income $ 38,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
Total Per Unit Sales (7,200 units) Variable expenses $ 230,400 136,800 93,600 $ 32.00 19.00 Contribution margin $ 13.00 Fixed expenses 55,600 Net operating income $ 38,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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