Certosimo Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. 
Required:
a.If sales increase to 7,040 units, what would be the estimated increase in net operating income?
b.If sales decline to 6,900 units, what would be the estimated net operating income?
Definitions:
Partnership Form
A legitimate business structure where two or more partners collaborate in managing the firm and splitting the profits.
Equity Capital
The amount of money that is invested in a company by its owners, as opposed to borrowed funds or debt.
Tax-Deductible
A portion of expenses that can be subtracted from gross income to reduce taxable income.
Discriminatory
Refers to unfair treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.
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