Answer:
$8000
Explanation:
sing the contribution margin analysis, net income is equal to the total contribution minus fixed cost.
i.e., net income = total contribution margin- fixed cost
9000= 30,000-21000
(3,000 units) $ 120,000
Variable expenses 90,000
Contribution margin 30,000
Fixed expenses 21,000
Net operating income $ 9,000
If sales decline to 2,900 units,
new sales revenue :
sales per unit
=$120,000/3000
=$40
New sales revenue = $40 x 2,900
=$116,000
variable expenses for 3000 unit = 90,000
variable expense per unit = 90000/3000= 30
variable cost for 2900 units = $87,000
Total contribution margin = selling price - variable expenses
=$116,000 - &87,000
new contribution margin =$29,000
New net operation income = new contribution margin - fixed costs
=$29,000- $21000
=$8000
