Answer:
$10,400
Explanation:
Given that,
Sales (2,000 units) = $ 40,000
Variable expenses = $24,000
Contribution margin = 16,000
Fixed expenses = 11,200
Net operating income = $ 4,800
If the selling price increases by $4 per unit and the sales volume decreases by 200 units.
Sales:
= Number of units sold × Selling price per unit
= (2,000 - 200) × ($20 + $4)
= 1,800 × $24
= $43,200
Variable expenses:
= $21,600
Contribution margin:
= Sales - Variable cost
= $43,200 - $21,600
= $21,600
Net operating income:
= Contribution margin - Fixed expenses
= $21,600 - $11,200
= $10,400