A cement manufacturer has supplied the following data: If the company increases its unit sales volume by 4% without increasing its fixed expenses, then total net operating income should be closest to: (Round your intermediate calculations to 2 decimal places.)

Question

A cement manufacturer has supplied the following data:  If the company increases its unit sales volume by 4% without increasing its fixed expenses, then total net operating income should be closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

Unit sales = 680,000 units × 1.04 = 707,200 units
Unit selling price = $2,788,000 ÷ 680,000 units = $4.10 per unit
Variable manufacturing expense per unit = $1,156,000 ÷ 680,000 units = $1.70 per unit
Variable selling and administrative expense per unit = $272,000 ÷ 680,000 units = $0.40 per unit
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A Cement Manufacturer Has Supplied the Following Data: If