A company sells one product and its contribution margin ratio is 25%. The company provides the following data regarding their operation: Current sales revenue Expected sales revenue next year Expected increase in net operating income next year $2,520,000 $2,620,800 12% Q. What is the net operating income for the current year? ANS $ Assume a company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: May 4,800 $ 168,000 86,400 81,600 June 5,000 $ 175,000 90,000 85,000 July 5,500 $ 192,500 99,000 93,500 Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income 17,000 16,800 29,600 63,400 $ 18, 200 17,000 17,500 30,000 64,500 $ 20,500 17,000 19,250 31,000 67,250 $ 26,250 What is the estimated net operating income if the company sells 5,200 units? Multiple Choice $20,800 $25,600 Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July -- Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: Estimated total fixed manufacturing overhead $ 13,000 Estimated variable manufacturing overhead per direct labor-hour $ 1.00 Estimated total direct labor hours to be worked 2,000 Total actual manufacturing overhead costs incurred $ 12,800 Direct materials Direct labor cost Actual direct labor hours worked What is the total Job cost for Job Z? Job Y Job 2 $ 13,000 $ 7,800 $ 21,000 $ 7,500 1,400 480 Multiple Choice $18.900 $17.680 Advertising Shipping Salaries and commissions otal selling and administrative expenses et operating income 17,000 16,800 29,600 63,400 $ 18,200 17,000 17,500 30,000 64,500 $ 20,500 17,000 19,250 31,000 67,250 $ 26,250 at is the estimated net operating income if the company sells 5,200 units? Multiple Choice O $20,800 $25,600 $22,800 $20,400 Actual direct labor hours worked What is the total job cost for Job Z? $ 21,000 1,400 $ 7,500 480 Multiple Choice $18.900 $17.680 $16.900 $19.680