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Cost Volume Profit Analysis Voltar Company manufacturers and sells a specialized cordless telephone for high electromagnetic radiation environments....

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Cost Volume Profit Analysis Voltar Company manufacturers and sells a specialized cordless telephone for high electromagnetic radiation environments. The company’s contribution format income statement for the most recent year is given below: In an effort to increase sales and profits, management is considering the use of a higher-quality speaker. The higher-quality speaker would increase variable costs by $3 per unit, but management could eliminate one quality inspector who is paid a salary of $30,000 per year. The sales manager estimates that the higher-quality speaker would increase annual sales by at least 20%. Compute the company’s new net operating income.
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Accounting-8196500.xls

SOLUTION:
Computation of New Net Operating Income
Particulars
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
New Net Operating Income Amount
$1,440,000.00
$1,152,000.00
$288,000.00...

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