Answer:
1. $41,100
2. $40,580
3. $28,100
Explanation:
1. Sales volume increase by 40 units
Total sales $229,400
7,440 × $31
Less: Variable Expense $133,200
7,440 × $18
Contribution margin $96,200
Less: Fixed expenses $55,100
Net operating income $41,100
2. Sales volume decreases by 40 units
Sales Volume $228,160
7,360 × $31
Less: Variable expense $132,480
7,360 × $18
Contribution margin $95,680
Less: Fixed expenses $55,100
Net operating income $40,580
3. Sales volume is 6,400 units
Total sales $198,400
6,400 × $31
Less: Variable expense $115,200
6,400 × $18
Contribution margin $83,200
Less: Fixed expenses $55,100
Net operating income $28,100