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Jilk Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is
Jilk Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. 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 $103,000? Multiple Choice $7,260 $59,740 $59,740 $67,000 $23,740 Data concerning Lemelin Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $230 115 $115 Percent of Sales 100% 50% 50% The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 200 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice 0 increase of $22,400 0 decrease of $1,400 0 increase of $1,400 0 decrease of $22,400 Break-even analysis assumes that: Multiple Choice Total revenue is constant. Selling prices must fall in order to generate more revenue. Unit fixed expense is constant. Unit variable expense is constant
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