1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 9,000 units?

A. $16,500

B.$13,500

C. $0

Explanation:

A. Calculation for the revised net operating income per month if the sales volume increases by 100 units

Sales $353,500

[(10,000units+100 units) × $35.00]

Less Variable expenses 202,000

[(10,000units+100 units) × $20.00]

Contribution margin 151,500

[(10,000units+100 units) × $15.00]

Fixed expenses 135,000

Net operating income$16,500

(151,500-135,000)

Therefore the revised net operating income per month if the sales volume increases by 100 units will be $16,500

2. Calculation for the revised net operating income per month if the sales volume decreases by 100 units

Sales $346,500

(10,000units-100 units) × $35.00]

Less Variable expenses 198,000

10,000units-100 units) × $20.00]

Contribution margin 148,500

10,000units-100 units) × $15.00]

Fixed expenses 135,000

Net operating income$13,500

(148,000-135,000)

Therefore the revised net operating income per month if the sales volume decrease by 100 units will be $13,500

3., Calculation for the revised net operating income per month if the sales volume is 9,000 units?

Sales $315,000

(9,000units × $35.00]

Less Variable expenses 180,000

(9,000units × $20.00]

Contribution margin 135,000

(9,000units × $15.00]

Fixed expenses135,000

Net operating income$0

(135,000-135,000)

Therefore the revised net operating income per month if the sales volume is 9,000 units will be $0

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