Hello, I have the following question. Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units. Revenues $170,500 Cost of Goods sold ($10,000 +...


Hello,


I have the following question.


Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units.








































Revenues$170,500
Cost of Goods sold ($10,000 + $2.75/unit)52,625
Gross Profit

$117,875


Operating expenses
Selling ($2,450 + $1.15/unit)20,275
Administration ($5,000 + $0.45/unit)11,975
Operating Income$85,625

Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by $13,000.  Do not round intermediate calculations.



Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by $10,000.  Do not round intermediate calculations.



Jun 01, 2022
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