Question
(TCO C) A tile manufacturer has supplied the following data. Boxes of tile produced and sold 625,000 Sales revenue $2,975,000 Variable manufacturing expense $1,720,000 Fixed
(TCO C) A tile manufacturer has supplied the following data.
Boxes of tile produced and sold | 625,000 |
Sales revenue | $2,975,000 |
Variable manufacturing expense | $1,720,000 |
Fixed manufacturing expense | $790,000 |
Variable selling and admin expense | $152,000 |
Fixed selling and admin expense | $133,000 |
Net operating income | $180,000 |
Required:
Calculate the company's unit contribution margin.
Calculate the company's contribution margin ratio.
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be? (Points : 25)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started