Saloli, Inc., provides the following information:
$$\begin{array} { | l | r | }
\hline \text { Units } & 500 \
\hline \text { Sales } & \$ 30,000 \
\hline \text { Variable Costs } & \$ 18,000 \
\hline \text { Fixed Costs } & \$ 6,000 \
\hline
\end{array}$$
1) If Saloli increases its unit selling price by 5%, with no changes in variable costs and sales volume, its new operating income will be ________.
2) If Saloli decreases its variable costs by $2 per unit, with no change in selling price per unit and sales volume, its new operating income will be ________.

Question

Saloli, Inc., provides the following information:
 $$\begin{array} { | l | r | } 
\hline \text { Units } & 500 \
\hline \text { Sales } & \$ 30,000 \
\hline \text { Variable Costs } & \$ 18,000 \
\hline \text { Fixed Costs } & \$ 6,000 \
\hline
\end{array}$$
1) If Saloli increases its unit selling price by 5%, with no changes in variable costs and sales volume, its new operating income will be ________.
2) If Saloli decreases its variable costs by $2 per unit, with no change in selling price per unit and sales volume, its new operating income will be ________.

Quizplus · Accepted Answer

The Answer of Saloli, Inc., provides the following information:
 $$\begin{array} { | l | r | } 
\hline \text { Units } & 500 \
\hline \text { Sales } & \$ 30,000 \
\hline \text { Variable Costs } & \$ 18,000 \
\hline \text { Fixed Costs } & \$ 6,000 \
\hline
\end{array}$$
1) If Saloli increases its unit selling price by 5%, with no changes in variable costs and sales volume, its new operating income will be ________.
2) If Saloli decreases its variable costs by $2 per unit, with no change in selling price per unit and sales volume, its new operating income will be ________.

Saloli, Inc 1) If Saloli Increases Its Unit Selling Price by 5