Montesdeoca Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Required:
a. If sales decline to 1,900 units, what would be the estimated net operating income?
b. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income?
c. What is the break-even point in dollar sales?

Question

Montesdeoca Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. If sales decline to 1,900 units, what would be the estimated net operating income?
b. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income?
c. What is the break-even point in dollar sales?

Quizplus · Accepted Answer

The Answer of Montesdeoca Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
  Required:
a. If sales decline to 1,900 units, what would be the estimated net operating income?
b. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income?
c. What is the break-even point in dollar sales?

Montesdeoca Corporation Has Provided the Following Contribution Format Income Statement