Question
Sales $ 310,000 $ 20 Variable expenses 217,000 14 Contribution margin 93,000 $ 6 Fixed expenses 73,800 Net operating income $ 19,200 Required: 5. What
| Sales | $ 310,000 | $ 20 |
|---|---|---|
| Variable expenses | 217,000 | 14 |
| Contribution margin | 93,000 | $ 6 |
| Fixed expenses | 73,800 | |
| Net operating income | $ 19,200 |
Required:
5. What is the companys CM ratio? If the company can sell more units thereby increasing sales by $85,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
