Question
A tile manufacturer has supplied the following data. Boxes of tile produced and sold 625,000 Sales revenue $2,975,000 Variable manufacturing expense $1,720,000 Fixed manufacturing expense
A tile manufacturer has supplied the following data.
Boxes of tile produced and sold | 625,000 |
Sales revenue | $2,975,000 |
Variable manufacturing expense | $1,720,000 |
Fixed manufacturing expense | $790,000 |
Variable selling and admin expense | $152,000 |
Fixed selling and admin expense | $133,000 |
Net operating income | $180,000 |
Required: Calculate the company's unit contribution margin. Calculate the company's contribution margin ratio. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?
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