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  1. business
  2. accounting
  3. total per unit sales (20,000 units) $ 300,000 $ 1

Total Per Unit Sales (20,000 units) $ 300,000 $ 15.00 Variable expenses...

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Accounting

Total Per Unit
Sales (20,000 units) $ 300,000 $ 15.00
Variable expenses 180,0009.00
Contribution margin 120,000 $ 6.00
Fixed expenses 70,000
Net operating income $ 50,000
Required:
(Consider each of the four requirements independently):
Assume the sales volume increases by 3,000 units:
What is the revised net operating income?
What is the percent increase in unit sales?
Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?
What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%?
What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?

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