27 Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are the company's sales for a month are $738,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. A) $565,440 B) $654,000 C) $88,560 D) $4,560 S84 000 If 28. A cement manufacturer has supplied the following data Tons of cement produced and sold 680,000 s 2,788,000 S 1,156,000 s 760,000 S 272,000 s 294,000 S 306,000 Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's contribution margin ratio is closest to: A) 39.0% B) 51.2% C)11.0% D) 48.8% 29. Rhea Corporation has provided the following data for its two most recent years of operation: Selling price per unit 67 Manufacturing costs: Variable manufacturing cost per unit produced Direct materials Direct labor 10 Variable manufacturing overhead Fixed manufacturing overhead per year S 252,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year S 65,000 Year 1 Year 2 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory 0 1,000 9,000 7,000 8,000 7,000 1,000 1,000 The net operating income (loss) under absorption costing in Year 2 is closest to: A) S6,000 B) $99,000 C) (S2,000) D) $71,000 10