Calculate the firms operating income

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Question - Shown here is an income statement in the traditional format for a firm with a sales volume of 18,500 units:

Revenues $166,500

Cost of goods sold ($10,500 + $2.80/unit) 62,300

Gross profit $104,200

Operating expenses:

Selling ($2,450 + $0.85/unit) 18,175

Administration ($5,050 + $0.45/unit) 13,375

Operating income$72,650

Required -

Calculate the firm's operating income (or loss) if the volume changed from 18,500 units to 23,500 units.

Calculate the firm's operating income (or loss) if the volume changed from 18,500 units to 10,500 units.

Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues increase by $13,500.

Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues decrease by $10,000.

Reference no: EM132513361

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