FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Gayne Corporation's contribution margin ratio is 1 2 % and its fixed monthly expenses are $ 8 4 , 0 0 0 . If the

Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Refer to Example 9.7. The quality control manager wants to know whether the daily yield at a local chemical plant-which has averaged 880 metric tons for the last several years has changed in recent...

Answered: 1 week ago

Question

★★★★★
Rayre Books uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at October 31, 2017. At December 31, Rayre...

Answered: 1 week ago

Question

★★★★★
Consider a 3-year project with sales in year 1 of $1,171,700. The sales are expected to grow annually at 6.50%. At the end of each year, the company needs to have ready non-cash working capital equal...

Answered: 1 week ago

Question

★★★★★
Yeaman Company expects to produce 2,040 units in January that will require 10,200 hours of direct labor and 2,270 units in February that will require 11,350 hours of direct labor. Yeaman budgets $5...

Answered: 1 week ago

Question

★★★★★
Lemon Laws" are meant to: Group of answer choices decrease consumer confidence in the purchasing of cars. make selling cars less profitable for dealers. increase consumer confidence in the purchasing...

Answered: 1 week ago

Question

★★★★★
Refer to the table below to answer the following question Table 1: Production Possibilities for Simon's simple factory Nuts (units per day) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Bolts (units...

Answered: 1 week ago

Question

★★★★★
Match the communication methods with their corresponding advantages in the table below: Table of communication methods and descriptions. Method A: Increases flexibility and reduces pressure. Method...

Answered: 1 week ago

Question

★★★★★
A. Patrimonio is a stockholder of ABC, Inc. which has 30,000 shares outstanding and 50,000 shares of authorized capital stock. There are eleven seats in the board of directors. 7. How many shares and...

Answered: 1 week ago

Question

★★★★★
28 S Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in...

Answered: 1 week ago

Previous Question Next Question