Best estimate of the company net operating income


Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If the company's sales for a month are $738,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

a) $565,440

b) $654,000

c) $88,560

d) $4,560

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Accounting Basics: Best estimate of the company net operating income
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