Asked by LaQuesha Jewell on Jun 09, 2024
Verified
Certosimo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Required:
a. If sales increase to 7,040 units, what would be the estimated increase in net operating income?
b. If sales decline to 6,900 units, what would be the estimated net operating income?
Net Operating Income
Income originating from a corporation's central business endeavors, excluding subtractions for interest and taxes.
- Examine the impact of variations in sales volume and selling price on the net operating income.
Verified Answer
ST
Steven TylerJun 12, 2024
Final Answer :
a. The increase in net operating income would be the increased contribution margin because fixed expenses are not affected.
b.
b.
Learning Objectives
- Examine the impact of variations in sales volume and selling price on the net operating income.
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