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Question(s) / Instruction(s):

A tile manufacturer has supplied the following data:

Boxes of tiles produced and sold                              240,000

Sales revenue                                                           $1,128,000

Variable manufacturing expense                              $456,000

Fixed manufacturing expense                                    $320,000

Variable selling and administrative expense        $156,000

Fixed selling and administrative expense              $96,000

Net Operating income                                                   $100,000

If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to:

a)            $101,371

b)            $3,000

c)            $103,000

d)            $115,480

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