Tons of cement produced and sold		300,000
Sales revenue	$	1,004,000
Variable manufacturing expense	$	237,000
Fixed manufacturing expense	$	328,000
Variable selling and administrative expense	$	134,480
Fixed selling and administrative expense	$	98,000
Net operating income	$	206,520

The company's contribution margin ratio is closest to:

Multiple Choice

43.7%

63.0%

67.3%

20.6%

.

Kuzio Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit			Percent of Sales
Selling price	$	130			100	%
Variable expenses		65			50	%
Contribution margin	$	65			50	%

The company is currently selling 6,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Multiple Choice

increase of $1,900

increase of $9,100

decrease of $7,200

decrease of $1,900