1. what would be the revised net operating income per month if the sales volume increases by 70 units? 2. what would be the revised net operating income per month if the sales volume decreases by 70 units? 3. what would be the revised net operating income per month if the sales volume is 6,500 units?

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-07-04T23:03:21+02:00

The revised net operating income per month if the sales volume increase by 70 units is $32740.

The revised net operating income per month if the sales volume increase by 70 units will be

Sales = 7370 × 31 = $228470

Less: Variable expenses = 7370 × 19 = $140030

Contribution margin = 7370 × 12 = $88440

Less: Fixed expenses = $55700

Net operating income = $32740

When there's a decrease, this will be:

Sales = 7230 × 31 = $224130

Less: Variable expenses = 7230 × 19 = $137370

Contribution margin = 7230 × 12 = $86760

Less: Fixed expenses = $55700

Net operating income = $31060

The revised net operating income per month if the sales volume is 6,500 units will be:

Sales = 6500 × 31 = $201500

Less: Variable expenses = 6500 × 19 = $123500

Contribution margin = 6300 × 12 = $78000

Less: Fixed expenses = $55700

Net operating income = $22300

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