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Submitted by rubyCpaMba on Mon, 2013-11-25 01:15
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rubyCpaMba bought 372 out of 1130 answered question(s)

A cement manufacturer has supplied the following data:

A cement manufacturer has supplied the following data:

Tons of cement produced and sold                                  220,000

Sales revenue                                                               $924,000

Variable manufacturing expense                                    $297,000

Fixed manufacturing expense                                         $280,000

Variable selling and admin expense                                $165,000

Fixed selling and admin expense                                    $82,000

Net operating income                                                    $100,000




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)