Discuss the effect of a volume increase in sales, a price increase in sales, and a cost decrease on the net operating income.© BrainMass Inc. brainmass.com October 10, 2019, 5:58 am ad1c9bdddf
To effectively present this, let's start with a picture of the Income Statement:
(less cost of goods sold)
= Gross Profit
(less operating expenses)
(less other expenses)
= Earnings Before Interest and Taxes (EBIT)
= Net Profit (net operating ...
This report is an analysis of impacts as a result in increases in sales, decreases in expenses, and their effects on the reporting of income and expenses with regard to the Income Statement. It is a brief discussion of how these items will affect the operation of a firm from a reporting standpoint.