Question - A tile manufacturer has supplied the following data.
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Boxes of tile produced and sold
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625,000
|
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Sales revenue
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$2,975,000
|
|
Variable manufacturing expense
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$1,720,000
|
|
Fixed manufacturing expense
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$790,000
|
|
Variable selling and admin expense
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$152,000
|
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Fixed selling and admin expense
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$133,000
|
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Net operating income
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$180,000
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Required:
Calculate the company's unit contribution margin.
Calculate the company's contribution margin ratio.
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?