[danambjones]

A tile manufacturer has supplied the following data:

Boxes of tiles produced and sold 580,000
Sales revenue 2,842,000
Variable manufacturing expense 1,653,000
Fixed manufacturing expense 784,000
Variable selling and administrative expense 145,000
Fixed selling and administrative expense 128,000
Net operating income 132,000


If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

The answer is: 184,200
Can you show me the work to get this answer?

[CaptainForest]

OLD INFORMATION:
Sales revenue 2,842,000
LESS: Variable manufacturing expense 1,653,000
LESS: Variable selling and administrative expense 145,000

TOTAL = 1,044,000

LESS: Fixed manufacturing expense 784,000
LESS: Fixed selling and administrative expense 128,000
Net operating income = 132,000


Increase by 5%
TOTAL = 1,044,000 x 1.05 = 1,096,200

LESS: Fixed manufacturing expense 784,000
LESS: Fixed selling and administrative expense 128,000
Net operating income = 184,200