Asked by Haley Smith on Jun 29, 2024
Verified
If sales increase to 3,040 units, the increase in net operating income would be closest to:
A) $420.00
B) $140.00
C) $1,200.00
D) $780.00
Net Operating Income
A measure of a company's profitability excluding interest and tax expenses.
Operating Income
This is the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.
- Assess the impact of changes in variable costs and sales volume on net operating income.
Verified Answer
MS
Mohamed SaeedJul 02, 2024
Final Answer :
A
Explanation :
The increase in net operating income would be the increased contribution margin because fixed expenses are not affected. 
Learning Objectives
- Assess the impact of changes in variable costs and sales volume on net operating income.