A company has provided the following data: If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,net operating income will:

Question

A company has provided the following data:  If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,net operating income will:

Quizplus · Accepted Answer

Current contribution margin per unit:
 11eaaee8_677d_6c7c_933a_8770e2fc0411_TB5186_00 Proposed increase in contribution margin per unit = $20 F1F1F1S1F1F1F10 10% = $2
 11eaaee8_677d_6c7d_933a_71dc239ccf32_TB5186_00

A Company Has Provided the Following Data: If the Dollar