Estimate of the company net operating income


Question: Creswell Corporation's fixed monthly expenses are $27,500 and its contribution margin ratio is 61%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $87,000?

A. $6,430

B. $53,070

C. $25,570

D. $59,500

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Accounting Basics: Estimate of the company net operating income
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