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Sales Variable Costs Contribution Margin Fixed Costs Operating Income $100,000 $60,000 $40,000 $30,000 $10,000 The above fina
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Answer #1
New operating Income = 15640
Workings:
Per unit Total
(a) (a) * 10989 units
Sales = $    10.38 $             1,14,100
Less: Variable cost = $       6.23 $                68,460
Contribution margin = $       4.15 $                45,640
Less: Fixed costs $                30,000
Operating Income $                15,640
Sales Price per unit ($100000/9631) = $                   10.38
Less: Variable cost per unit ($60000/9631) = $                     6.23
Contribution per unit = $                     4.15
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