Certosimo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Required:
a. If sales increase to 7,040 units, what would be the estimated increase in net operating income?
b. If sales decline to 6,900 units, what would be the estimated net operating income?

Question

Certosimo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. If sales increase to 7,040 units, what would be the estimated increase in net operating income?
b. If sales decline to 6,900 units, what would be the estimated net operating income?

Quizplus · Accepted Answer

The Answer of Certosimo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. If sales increase to 7,040 units, what would be the estimated increase in net operating income?
b. If sales decline to 6,900 units, what would be the estimated net operating income?

Certosimo Corporation Has Provided the Following Contribution Format Income Statement