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
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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