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Chapter 5: Applying Excel Data Unit sales 84,000 units Selling price per unit $10 per unit...

Chapter 5: Applying Excel
Data
Unit sales 84,000 units
Selling price per unit $10 per unit
Variable expenses per unit $4 per unit
Fixed expenses $210,000

4. a) What is net operating income? (Negative amount should be indicated by a minus sign.)

(b) By what percentage did the net operating income increase?

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Answer #1

Ans:

(a)

Particulars
Units sold = 84,000 Unit cost $ Amount $
Sales 10 840,000
- Variable cost (4) (336,000)
Contribution margin 6 504,000
- Fixed cost (210,000)
Net operating income 294,000

Net operating income margin:

= (Net operating income/Sales)*100

= ($294,000/$840,000)*100

= 35%

(b) Need more information, Previous net operating income,

% increase in net operating income(NOP):

= ((NOI - Previous NOI)/Previous NOI)*100

If any doubts or queries please comment and clarify I'll explain ASAP and please like for the answer.

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