1. Jilk Inc.'s contribution margin ratio is 62% and its fixed monthly expenses are $46,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $135,000?

2.

Saada Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the departments operations in March.

	Units				Percent Complete with Respect to Conversion
Beginning work in process inventory		6,500				20	%
Transferred in from the prior department during March		61,800
Ending work in process inventory		10,000				60	%

The Fitting Departments cost per equivalent unit for conversion cost for March was $6.13. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?