Answer:
$492,925
Explanation:
Net operating income of product Alpha- 32 at a price of $79.50 if the sales forecast is correct.
Unit sales = 92,150 units as per sales forecast
Selling price per unit = $79.50
Contribution:
= Sales - variable costs
= (units sold × Selling price per unit) - (units sold × Variable cost per unit)
= (92,150 × $79.50
) - (92,150 × $60.00)
= $7,325,925 - $5,529,000
= $1,796,925
Net operating income:
= Contribution - Fixed cost
= $1,796,925 - $1,304,000
= $492,925
