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

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