Acompany has provided the following data: picture if the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will: increase by $61,000. increase by $20,000. increase by $3,500. increase by $11,000.

The net operating income increases by $11,000.

Explanation:

Data provided

Sales 3,000 units

Sales Price $70 per unit

Variable Cost $50 per unit

Fixed Cost $25,000

We can calculate the contribution margin as:

Contribution margin = sales price - variable cost = (70-50) = 20

The net operating income can be defined as:

According to the changes proposed in the problem

Contribution margin  = 20 * (1+0.1) = 22

Fixed cost = 25,000 * (1-0.2) = 20,000

The new net operating income is:

Then

With these changes, the net operating income increases by $11,000.

answer; /// the use of a bank credit card to make purchase;