Respuesta :
Answer: $450
Explanation: Net operating income is the income a company has left with after deducting for fixed and variable expenses. It is also denoted as EBIT, Earnings before interest and tax.
EBIT = sales - ( variable expenses + fixed expenses )
now,
sales = $40 * (1000 + 50 )units = $42000
variable expense = ($30 + $1)*(1050 units) = $32,550
fixed expenses = $7000 + $2000 = $9000
therefore,
EBIT = $42000 - ($32,550 + $9000) = $450
Answer:
The net operating income would be closest to $450.
Explanation:
VARIABLE EXPENSES = $30,000
we know the total number of units - 1000, so therefore we can take out the
VARIABLE COST PER UNIT = $30,000 / 1000
= $30
SALES = $40,000
we know the total number of units - 1000, so therefore we can take out the
SALES PER UNIT = $40
And we have been told that the variable expenses have been increased bu $1 and total number of units have also increased by 50 units, so with this information we can take out new variable expenses and total sales,
TOTAL SALES(NEW) = 1050 X 40
= $42,000
NEW VARIABLE EXPENSES = 1050 X $31
= $32,550
And also the fixed expenses have increased by $2000 (advertising expenses ) , so
FIXED COST = $7000 + $2000
= $9000
Now we calculate the net operating income,
SALES = $42,000
(-) VARIABLE EXPENSES = $32,550
(-) FIXED COST = $9000
NET OPERATING INCOME = $450
