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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
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