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Creswell Corporation's fixed monthly expenses are $28,500 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is

Creswell Corporation's fixed monthly expenses are $28,500 and its contribution margin ratio is 63%. 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 $89,000?

Multiple Choice

  • $4,430

  • $27,570

  • $60,500

  • $56,070

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