Reference no: EM132581120

A company's contribution format income statement for the most recent month is shown below:

                                          Total                 Per Unit

Sales (30,000 units)     $180,000          $6.00

Variable expenses          90,000             3.00

Contribution margin       90,000            $3.00

Fixed expenses            43,000

Net operating income   $47,000

Question 1: What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 8%?

Multiple Choice

Option 1: $77,382

Option 2: $70,160

Option 3: $67,633

Option 4: $80,735