Montesdeoca Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.
Required:
a.If sales decline to 1,900 units,what would be the estimated net operating income?
b.If the selling price increases by $4 per unit and the sales volume decreases by 200 units,what would be the estimated net operating income?
c.What is the break-even point in dollar sales?
Definitions:
Internal-External Scale
A psychological measure indicating the extent to which individuals attribute their successes or failures to internal factors (their own efforts) or to external factors (such as luck).
Nowicki-Strickland
A psychological assessment tool used to measure an individual's perceived locus of control.
Locus of Control
A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.
Locus of Control
A mental principle suggesting the level of conviction individuals possess regarding their ability to influence the circumstances and events impacting their existence.
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