If Sales Increase To 1,001 Units, What Would Be The Increase In Net Operating Income?

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If Sales Increase To 1,001 Units, What Would Be The Increase In Net Operating Income?

ales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales ---------------------22,400 Variable Expenses -------12,800 Contribution Margin -----9,600 Fixed Expenses -----------7,968 Net Operating Income ---1,632 4. If sales increase to 1,001 units, what would be the increase in net operating income?
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Contribution Margin Per Unit (a) = $9.60 per unit Increase in Unit Sales (b) = 1 unit Increase in Net Operating Income (a) X (b) = $9.60 X 1 = $9.60

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