how to calculate increase in net operating income?
Asked Mar 13, 2011, 10:35 PM
How do I calculate the increase or loss of net operating income?
Per unit Percent of Sales
Selling price $76.00 100%
Variable expenses 41.80 55%
Contribution margin $34.20 45%
Fixed expenses are $75,500 per month and the company is selling 3,200 units per month.
Calculate the increase or decrease in net operating income if a $8,000 increase in the monthly advertising budget would increase monthly sales by $15,000