Answer :
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales (33,000 units*$10) $ 330,000
Variable expenses 231,000 ($7.00)
Contribution margin 99,000 ($ 3.00)
Fixed expenses 50,000
Net operating income $ 49,000
1) Increase in units= 13%
Sales= (37,290*10)= 372,900
Variable cost= (37,290*7)= 261,030
Contribution margin= 111,870
Fixed costs= 50,000
Net operating income= $61,870
2) Price= 8.80
Units= 33,000*1.24= 40,920
Contribution margin= (8.8 - 7)* 40,920= 73,656
Fixed costs= 50,000
Net operating income= 23,656
3) Selling price= 11.20
Fixed expense= 57,000
Units= 33,000¨1.04= 34,320
Contribution margin= (11.2 - 7)*34,320= 144,144
Fixed costs= 57,000
Net operatign income= $87,144
4) Selling price= 11
Variable cost= 7.30
Units= 33000*0.88= 29,040
Income= (11-7.30)*29040 - 50,000= $57,448