Answer:
A. $16,500
B.$13,500
C. $0
Explanation:
A. Calculation for the revised net operating income per month if the sales volume increases by 100 units
Sales $353,500
[(10,000units+100 units) × $35.00]
Less Variable expenses 202,000
[(10,000units+100 units) × $20.00]
Contribution margin 151,500
[(10,000units+100 units) × $15.00]
Fixed expenses 135,000
Net operating income$16,500
(151,500-135,000)
Therefore the revised net operating income per month if the sales volume increases by 100 units will be $16,500
2. Calculation for the revised net operating income per month if the sales volume decreases by 100 units
Sales $346,500
(10,000units-100 units) × $35.00]
Less Variable expenses 198,000
10,000units-100 units) × $20.00]
Contribution margin 148,500
10,000units-100 units) × $15.00]
Fixed expenses 135,000
Net operating income$13,500
(148,000-135,000)
Therefore the revised net operating income per month if the sales volume decrease by 100 units will be $13,500
3., Calculation for the revised net operating income per month if the sales volume is 9,000 units?
Sales $315,000
(9,000units × $35.00]
Less Variable expenses 180,000
(9,000units × $20.00]
Contribution margin 135,000
(9,000units × $15.00]
Fixed expenses135,000
Net operating income$0
(135,000-135,000)
Therefore the revised net operating income per month if the sales volume is 9,000 units will be $0
