Income Statement of Base Corporation Sales Volume Present Sales $ 100,000 Variable expenses 50,000 Contribution margin 50,000 Fixed expenses 20,000 Net Operating income $ 30,000 Knowledge Check 01 If sales increase by $50,000, what will be the net operating income for the company? $25,000

The net operating income for the company after sales increase will be $55000.

The change in net operating income as a result of sales increase will be $25000.

Explanation:

The net operating income of the company is calculated by deducting the variable and fixed expenses of operations from net sales.

The current net operating income is:

Net operating income = 100000 - 50000 - 20000 = $30000

The variable costs will increase as a result of increase in sale.

The variable costs are 50% of sales = VC / sales = 50000 / 100000 = 50%

The new sales level is = $100000 + 50000 = $150000

As the variable costs are 50% of sales, the new variable costs will be = 150000 * 0.5 = $75000

The fixed costs will remain fixed at $20000.

The new net operating profit will be = 150000 - 75000 - 20000 = $55000

The change in operating profit will be = new Operating profit - old operating profit   =  55000 - 30000 = $25000

First of all, Jose and Jessie have a big difference when it comes to physical health and condition. Jessie is not able to perform the same exercises as Jose, neither the same intensity, and they cannot have the same goal.

So, for Jessie improve her flexibility we have to consider low intensity exercises, specifically, aerobic exercises, like walking, dancing, jogging at a low pace, pilates and yoga. Jessie, as a sedentary person most consider to do those aerobic activities three times per week, at least 30 minutes to ensure that she is demanding enough effort from her body, but all at low intensity.

In addition, before and after each session, Jessie must stretch her body, between 15 and 30 minutes, this way she will improve her flexibility and her energy level through aerobic processes.

On the other hand, Jose has to perform more intense exercises, which also involve aerobic respiration. When it comes to flexibility we consider aerobic exercises because they use oxygen as a source of energy, and this will also improve the endurance which is important to improve flexibility.

So, Jose can do Suicids Runs, which is a high performance exercises which sedentary people cannot do. These type of exercises will improve endurance and flexibility, because it will help to muscle elasticity. Also, Jose  will perform side lunges, jumping jacks, squats and push-ups, which are focused in specific part of the body.

For both, we recommend to ingest water-based diets, because it has big importance when it comes to flexibility.