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Che Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, L05-5, LO5-6, LO5-7, LO5-8) (The following information app
Required information The Foundational 15 [L05-1, L05-3, L05-4, L05-5, LO5-6, LO5-7, L05-8) [The following information applies
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6. Current selling price per unit = 10000 / 1000 10
Current variable cost per unit = 5500 / 1000 5.5
New selling price = 10 + 2 12
New sales volume = 1000 - 100 900
Sales ( 900 * 12 ) 10800
(-) Variable expenses ( 900 * 5.5 ) 4950
Contribution margin 5850
(-) Fixed expenses 2250
Net operating income 3600
7. New variable cost per unit = 5.5 + 1 6.5
New fixed cost = 2250 + 1000 3250
New sales volume = 1000 + 100 1100
Sales ( 1100 * 10 ) 11000
(-) Variable cost per unit ( 1100 * 6.5 ) 7150
Contribution margin 3850
(-) Fixed expenses 3250
Net operating income 600
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