If the dollar contribution margin per unit is increased by

Reference no: EM13579758

A company has provided the following data:

Sales 4,000 units
Sales price $80 per unit
Variable cost $50 per unit
Fixed cost $30,000

If the dollar contribution margin per unit is increased by 10 percent, total fixed cost is decreased by 15 percent, and all other factors remain the same, will net operating income increase or derease? By how much?

Reference no: EM13579758

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