Part 2.Bhiner Company prepared the following contribution format income statement basedon a sales volume of 1,000 units (the relevant range of production is 500 units to1,500 units).Sales$25,000Variable expenses10.000ontribution margin15,000+Fixed expenses8.000Net operating income$ 7.000Required:(Answer each question independently and always refer to the original data unlessinstructed otherwise.) (Show all work/calculations. No credit will be given without f. If the selling price increases by $4 per unit and the sales volume decreases by 200units, what would be the net operating income?If the variable cost per unit increases by $2, spending on advertising increases byg.$1.000, and unit sales increase by 240 units, what would be the net operatingincome?h. What is the break-even point in unit sales?i. What is the break-even point in dollar sales?i. How units must be sold to achieve a target profit of $7,500?many

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f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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