Question - A cement manufacturer has supplied the following data.
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Tons of cement produced and sold
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220,000
|
|
Sales revenue
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$924,000
|
|
Variable manufacturing expense
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$297,000
|
|
Fixed manufacturing expense
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$280,000
|
|
Variable selling and admin expense
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$165,000
|
|
Fixed selling and admin expense
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$82,000
|
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Net operating income
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$100,000
|
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?