1.2.

Carly's Cement Company manufactures cement. Carly's has supplied us the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 290,000 $994,000 $235,000 $322,000 $ 172,540 $ 96,000 $ 168,460 The company's contribution margin ratio is closest to: Dustin's Door Company make and sell custom-made doors for families. Dustin's Door Company has provided its contribution format income statement for July. Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 245,000 140,000 105,000 87,700 $ 17,300 If Dustin's Door Company sells 7,200 units, its net operating income should be closest to: (Do not round intermediate calculations.)