A cement manufacturer has supplied the following data: Tons of cement produced and sold $260,000 sales revenue $1,118,000 Variable manufacturing expense $429,000 Fixed manufacturing expense $228,000 Variable selling and administrative expense $82,000 Fixed selling and administrative expense $91,000 Net operating income. $82,000 What is the company's unit contribution margin? What is the company's contribution margin ratio? If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will total net operating income be?
A cement manufacturer has supplied the following data: Tons of cement produced and sold $260,000 sales revenue $1,118,000 Variable manufacturing expense $429,000 Fixed manufacturing expense $228,000 Variable selling and administrative expense $82,000 Fixed selling and administrative expense $91,000 Net operating income. $82,000 What is the company's unit contribution margin? What is the company's contribution margin ratio? If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will total net operating income be?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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A cement manufacturer has supplied the following data:
Tons of cement produced and sold $260,000
sales revenue $1,118,000
Variable manufacturing expense $429,000
Fixed manufacturing expense $228,000
Variable selling and administrative expense $82,000
Fixed selling and administrative expense $91,000
Net operating income. $82,000
What is the company's unit contribution margin?
What is the company's contribution margin ratio?
If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will total net operating income be?
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