Respuesta :
Answer:
1) NOI = $90,240
2) NOI = 29,250
3) NOI = 133,260
4) NOI = 110,190
Explanation:
The question is incomplete.
Sales (38,000 units) $342,000 ($9.00 per unit)
Variable expenses $228,000 ($6.00 per unit)
Contribution margin $114,000 ($3.00 per unit)
Fixed expenses $42,000
Net operating income $72,000
1. What is the revised net operating income if unit sales increase by 16%
If unit sales increase, we can calculate this with a 16% increase in the contribution margin.
[tex]NOI=CM*(1+0.16)-FE=114,000*1.16-42,000=132,240-42,000\\\\NOI=90,240[/tex]
2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?
A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .
Also, the contribution margin increases by 25%, for the increase in units sold (q).
[tex]NOI=CM_u*q-FE=(3.00-1.50)*(38,000*1.25)-42,000\\\\NOI=1.5*47,500-42,000=71,250-42,000\\\\NOI=29,250[/tex]
3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?
The selliing price will be added to the contribution margin per unit.
The units sold are increased 6%.
[tex]NOI=CMu*q-FE=(3.00+1.50)*38,000*1.06-(42,000+6,000)\\\\NOI=4.5*40,280-48,000=181,260-48,000\\\\NOI=133,260[/tex]
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?
The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:
[tex]CM_u=P-VE_u=9.00*(1.20)-(6.00+0.30)=10.80-6.30=4.50[/tex]
The units sold is now:
[tex]q'=(1-0.11)q=0.89q=0.89*38,000=33,820[/tex]
Then, the net operating income becomes:
[tex]NOI=CM_u*q-FE=4.5*33,820-42,000=152,190-42,000\\\\NOI=110,190[/tex]
