Answer:
Increase in net operating income: $114,850 - $110,500= $4,350
Explanation:
Kuzio Corporation
Sales (4,900 units, 5,070units × $130) $637,000 $659,100
Variable expenses($637,000 $659,100 × 50%) $318,500 $329,550
Contribution margin $318,500 $329,550
Fixed expenses $208,000 $214,700
Net operating income $ 110,500 $114,850
Increase in net operating income: $114,850 - $110,500 = $4,350
The overall effect on the company's monthly net operating income of this change is $4,350