A cement manufacturer has supplied the following data:
|
Tons of cement produced and sold |
220,000 |
|
Sales revenue |
$924,000 |
|
Variable manufacturing expense |
$297,000 |
|
Fixed manufacturing expense |
$280,000 |
|
Variable selling and administrative expense |
$165,000 |
|
Fixed selling and administrative expense |
$82,000 |
|
Net operating income |
$100,000 |
If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:
A) $5,000
B) $123,100
C) $105,000
D) $102,500