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A cement manufacturer has supplied the following data: 220,000 Tons of cement produced and sold Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 $165,000 Variable selling and administrative expense Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

A cement manufacturer has supplied the following data: 220,000 Tons of cement produced and sold Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 $165,000 Variable selling and administrative expense Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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A cement manufacturer has supplied the following data: 220,000 Tons of cement produced and sold Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 $165,000 Variable selling and administrative expense Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:
Transcribed Image Text:A cement manufacturer has supplied the following data: 220,000 Tons of cement produced and sold Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 $165,000 Variable selling and administrative expense Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:
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