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A cement manufacturer has supplied the following data: Tons of cement produced and sold 220,000 Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 Variable selling and administrative expense $165,000 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: Tons of cement produced and sold 220,000 Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 Variable selling and administrative expense $165,000 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:

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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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 Variable selling and administrative expense $165,000 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 Variable selling and administrative expense $165,000 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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