Fantastic Frames sells units for $15 each. Variable costs total $6 per unit, and fixed costs total $90,000. If the number of units being sold increases by 2,000, net operating income will

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If the number of units sold by Fantastic Frames increased by 2,000, the net operating income will increase by $18,000.

What is the net operating income?

This can be found as:

= (Selling price - Variable cost) x Number of units sold

Solving gives:

= (15 - 6) x 2,000

= 9 x 2,000

= $18,000

Net operating income will increase by $18,000.

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