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Calculate the company unit contribution margin

Problem: A tile manufacturer has supplied the following data:

Boxes of tile produced and sold               625,000
Sales revenue                                   $2,975,000
Variable manufacturing expense         $1,720,000
Fixed manufacturing expense                $790,000
Variable selling and admin expense       $152,000
Fixed selling and admin expense            $133,000
Net operating income                            $180,000

Question 1: Calculate the company's unit contribution margin

Question 2: Calculate the company's unit contribution ratio

Question 3: If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

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Accounting Basics: Calculate the company unit contribution margin

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Calculate the company unit contribution margin

Reference No:- TGS01620067

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Rule-based versus principle-based accounting

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Calculate the company unit contribution margin

Reference No:- TGS01620067

Recent Questions Asked Accounting Basics

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Q : Charges taken for asset impairment

Q : Evaluate the report prepared by the bookkeeper

Q : Calculate the company unit contribution margin

Q : Subsidiary tax attributes

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