What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month? And there is no change in fixed expense. By how many would you expect monthly net operating income to increase by?               Per unit  Total  Volume  Sales    $40.00 608000   Variable cost    28 425600   Contribution margin    12 182400   Fixed expense      156000   Net operating    12 26400

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 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month?

And there is no change in fixed expense.

By how many would you expect monthly net operating income to increase by?

         
    Per unit  Total  Volume 
Sales    $40.00 608000  
Variable cost    28 425600  
Contribution margin    12 182400  
Fixed expense      156000  
Net operating    12 26400  
         
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