If the company increases its unit sales volume by 5% without increasing its fixed expenses, then… 1 answer below »

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