If a company, sold 42,000 units, total sales were $168,000, total variable expenses were $117,600, and fixed expenses were $37,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 275 units and total sales by $1,100? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
If a company, sold 42,000 units, total sales were $168,000, total variable expenses were $117,600, and fixed expenses were $37,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 275 units and total sales by $1,100? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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