S 330,000 $10.00 7.00 231.000 99,000 $ 3.00 44,000 expenseS Fixed expenses 1.5 $
ID: 2429951 • Letter: S
Question
S 330,000 $10.00 7.00 231.000 99,000 $ 3.00 44,000 expenseS Fixed expenses 1.5 $ 55,000 (Consider each case independently 1, what is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 3%? 4, what is the revised net operating income if the selling price per unit increases by 20% variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%? Print References 1. Net Prey 6 of 10 Next >Explanation / Answer
Answers
Requirement 1
A
Existing unit Sales
33,000
B
Unit Sales increase by
11%
C = A x B
Increased Unit Sales
3,630
D
Unit Contribution margin
$ 3.00
E = C x D
Increase in Net Operating Income
$ 10,890.00
F
Existing Net Operating Income
$ 55,000.00
G = E + F
Revised Net Operating Income
$ 65,890.00
Requirement 2
A
Existing unit Sales
33,000
B
Unit Sales increase by
23%
C=AxB
Increase in unit Sold
7,590
D=A+C
Revised no. of units sold
40,590
E
Existing Unit Contribution margin
$ 3.00
F
Decrease in Selling price
$ 1.20
G=E-F
Revised Unit contribution margin
$ 1.80
H=DxG
Revised Contribution margin
$ 73,062.00
I
Fixed Cost
$ 44,000.00
J=H - I
Revised Net Operating Income
$ 29,062.00
Requirement 3
A
Existing unit Sales
33,000
B
Unit sold decreases by
3%
C=A x B
Decrease in Unit Sold
990
D = A - C
Revised no. of units sold
32,010
E
Existing Unit Contribution margin
$ 3.00
F
Increase in Unit sale price
$ 1.20
G = E+F
Revised Unit Contribution
$ 4.20
H = D x G
Revised Contribution margin
$ 134,442.00
I
Total Fixed Cost [44000 + 9000]
$ 53,000.00
J = H - I
Revised Net Operating Income
$ 81,442.00
Requirement 4
A
Existing Unit sale price
$ 10.00
B
Sale price increase by
20%
C=AxB
Increase in unit sale price
$ 2.00
D=A+C
Revised Unit Sale price
$ 12.00
E
Existing Unit Variable cost
$ 7.00
F
Increase in variable cost
$ 0.30
G=E+F
Revised Unit variable cost
$ 7.30
H=D-G
Revised Unit Contribution margin
$ 4.70
I
Existing unit Sales
33,000
J
Decrease in Unit Sold
9%
K=IxJ
Unit sold decreased by
2,970
L=I-K
Revised no. of units sold
30,030
M = H x L
Revised total Contribution margin
$ 141,141.00
N
Fixed cost
$ 44,000.00
O=M - N
Revised Net Operating Income
$ 97,141.00
Requirement 1
A
Existing unit Sales
33,000
B
Unit Sales increase by
11%
C = A x B
Increased Unit Sales
3,630
D
Unit Contribution margin
$ 3.00
E = C x D
Increase in Net Operating Income
$ 10,890.00
F
Existing Net Operating Income
$ 55,000.00
G = E + F
Revised Net Operating Income
$ 65,890.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.