Answer:
1. $58,650
2. $57,150
3. $42,900
Explanation:
The computation of revised net operating income per month if
1. The sales volume increases by 50 units.
Total Sales $256,700
(7,550 × $34)
Less: Variable expenses $143,450
(7,550 × $19)
Contribution margin $113,250
Less: Fixed expenses $54,600
Net operating income $58,650
2. The sales volume decreases by 50 units.
Total Sales $253,300
(7,450 × $34)
Less: Variable expenses $141,550
(7,450 × $19)
Contribution margin $111,750
Less: Fixed expenses $54,600
Net operating income $57,150
3. The sales volume is 6,500 units.
Total Sales $221,000
(6,500 × $34)
Less: Variable expenses $123,500
(6,500 × $19)
Contribution margin $97,500
Less: Fixed expenses $54,600
Net operating income $42,900
