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Best Detroit Asphalt Inc.,a manufacturer of premium quality asphalt, has given you the following data as is requesting your help: Tons of asphaltproduced and sold

Best Detroit Asphalt Inc.,a manufacturer of premium quality asphalt, has given you the following data as is requesting your help:

Tons of asphaltproduced and sold ............................220,000

Sales revenue......................................................$924,000

Variable manufacturing expense .............................. $297,000

Fixed manufacturing expense .................................. $280,000

Variable selling and admin expense...........................$165,000

Fixed selling and admin expense................................ $82,000

Net operating income ............................................. $100,000

Required:

a. Calculate the company's unit contribution margin.

b. Calculate the company's unit contribution ratio.

c. 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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