Remmel corporation has provided the following contribution format income statement. assume that the following information is within the relevant range. sales (6,000 units) $ 300,000 variable expenses 240,000 contribution margin 60,000 fixed expenses 59,000 net operating income $ 1,000 if the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to:

(a) $19,000
(b) $16,800
(c) $13,800
(d) $17,733

The correct answer is C: $13,800

Explanation:

Giving the following information:

Sales (6,000 units) $ 300,000

Variable expenses 240,000

Contribution margin 60,000

Fixed expenses 59,000

Net operating income $ 1,000

Selling price= (300000/6000)= $50

Unitary variable cost= 240000/6000= $40

Unitary contribution margin= 10

Now:

Selling price= 53

Q= 5600

Unitary contribution margin= 10 + 3= 13

Net operating income:

Contribution margin= 5400*13=$72,800

Fixed expense= 59000

Net operating income= 13800

how does that happen,where u steel points

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%