Problem:
Bowe Corporation's fixed monthly expenses are $27,000 and its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change,
Required:
Question: What is the best estimate of the company's net operating income in a month when sales are $86,000?
- $7,400
- $51,600
- $24,600
- $59,000
Note: Please show the work not just the answer.