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Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16...

Assume the following information:

Amount Per Unit
Sales $ 300,000 $ 40
Variable expenses 120,000 16
Contribution margin 180,000 $ 24
Fixed expenses 60,000
Net operating income $ 120,000



If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 6,800 units?

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Answer #1

Sales comminion = ( 6800-2500X $ 403x2.5% Ans: Calculation of Net operating income_at 6500 units $ Sales (6800 x $40) 272,000

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