Answer: $2,430
Explanation:
Sales were based on a volume of 1,000 units.
Previous sales price = 105,000/1,000 = $105
Previous Sales volume = 100
Variable expenses = 73,500/1,000 = $73.50
New sales volume = 1,000 - 100 = 900
New sales price = 105 + 2 = $107
Net Operating Income = Sales - Varible Costs - Fixed costs
= (900 * 107) - ( 73.50 * 900) - 27,720
= 96,300 - 66,150 - 27,720
= $2,430
