Question
Gayne Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the company's sales for a month are $309,000, what is
Gayne Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the company's sales for a month are $309,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
Multiple Choice
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$204,380
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$55,620
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$6,620
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$260,000
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
047116920X, 978-0471169208
