Solution
Hi, Please find the answers as follows: Present Sales (19000*120) 2280000
Variable Cost (19000*84) 1596000 Contribution 684000 Fixed Cost 176400 Net Operating
Income 507600 Proposed Sales (23750*108) 2565000 Variable Cost (23750*84) 1995000
Contribution 570000 Fixed Cost 176400 Net Operating Income 393600 Part B: = (79000 +
176400)/(108-84) = 10641.67 or 10642 units. Thanks.