Problem:
Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. 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 $137,000?
- $83,570
- $5,930
- $36,070
- $89,500
Note: Be sure to show how you arrived at your answer.