A tile manufacturer has supplied the following data:
|
Boxes of tiles produced and sold |
580,000 |
|
Sales revenue |
$2,842,000 |
|
Variable manufacturing expense |
1,653,000 |
|
Fixed manufacturing expense |
784,000 |
|
Variable selling and administrative expense |
145,000 |
|
Fixed selling and administrative expense |
128,000 |
|
Net operating income |
$132,000 |
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) $6,600
B) $184,200
C) $134,422
D) $138,600