So n g price is 14th are creed How much will come change by 5.700 ?...

Question

Question

Answer 1

Answer #1

Contribution margin=Sales-Variable costs

=46-33=$13 per unit

Hence increase in operating income=increase in Contribution margin

=$13 per unit*5700 units

=$74100=increase in operating income.

NOTE:Total fixed costs and variable cost per unit do not change with change in units

Answer 2

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