Calderon Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales
Selling price $200 100%
Variable expenses 42 21%
Contribution margin $158 79%
Fixed expenses are $69,500 per month. The company is currently selling 800 units per month. Management is considering using a new component that would increase the unit variable cost by $26. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 300 units.
Required:What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected?

Yolo windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars): information on january 1 (beginning): direct materials inventory $ 89 work-in-process inventory 111 finished goods inventory 1,620 information for the year: administrative costs $ 3,610 direct labor 12,900 direct materials purchases 8,210 factory and machine depreciation 11,720 factory supervision 774 factory utilities 940 indirect factory labor 2,880 indirect materials and supplies 688 marketing costs 1,480 property taxes on factory 282 sales revenue 45,800 information on december 31 (ending): direct materials inventory $ 94 work-in-process inventory 138 finished goods inventory 1,430 required: prepare an income statement with a supporting cost of goods sold statement. (enter your answers in thousands of dollars (i.e., 234,000 should be entered as