Answer:
Instructions are listed below
Explanation:
Giving the following information:
Total Per Unit Sales (37,000 units at $6) $ 222,000
Variable expenses 111,000 ($3.00)
Contribution margin 111,000 ($ 3.00)
Fixed expenses 41,000
Net operating income $ 70,000
1) sales increase by 12%
Income= contribution margin* 1.12 - fixed expenses= 111,000*1.12 - 41,000= 83,320
2) selling price decreases by $1.30 per unit and the number of units sold increased by 19%.
Income= (37000*1.19)*(4.7-3) - 41,000= 33,851
3) the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreased by 7%
Income= (37000*0.93)*(7.30-3) - 47000= $100,963
4) the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreased by 13%
Income= (37000*0.87)*(7.2-3.2) - 41000= $87,760
