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Submitted by rubyCpaMba on Mon, 2013-11-25 01:15
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# A cement manufacturer has supplied the following data:

 A cement manufacturer has supplied the following data:Tons of cement produced and sold                                  220,000Sales revenue                                                               \$924,000Variable manufacturing expense                                    \$297,000Fixed manufacturing expense                                         \$280,000Variable selling and admin expense                                \$165,000Fixed selling and admin expense                                    \$82,000Net operating income                                                    \$100,000 Required: a. Calculate the company's unit contribution margin.b. Calculate the company's contribution margin ratio.c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?(Points : 25)
Submitted by rubyCpaMba on Mon, 2013-11-25 01:16
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## A cement manufacturer __correct w/ solutions !! Use it as a Guide !

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# Cement Manufacturer

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 xxxxxx xxxxxxxxxxxx xx Unit contribution margin = xxxxxxx x xxxxxx - xxxxxxx / 220000 Unit contribution margin x xxxxxx / 220000 Unit contribution margin = x 2.10 b) Contribution xxxxxx xxxxx = 2.10 / (924000/220000) xxxxxxxxxxxx margin xxxxx = xxxx / 4.20 Contribution margin ratio x 50% c) xxx Operating Income x xxxxx x xxxxxxx x 1.05)) x (280000 + 82000) Net xxxxxxxxx xxxxxx = xxxxx x 231000) - xxxxxx Net Operating Income x xxxxxx - xxxxxx xxx Operating Income x xxxxxxxx