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