Asked by
Megann Dallas
on Oct 11, 2024
Verified
Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000.If the company's sales for a month are $738,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
A) $565,440
B) $654,000
C) $88,560
D) $4,560
Fixed Monthly Expenses
Expenses that do not change from month-to-month, such as rent and insurance.
- Determine the net operating income through evaluating diverse magnitudes of sales, expenditures, and alterations in sales approach.
- Utilize the contribution margin ratio to evaluate the performance of a company.
Verified Answer
AL
Learning Objectives
- Determine the net operating income through evaluating diverse magnitudes of sales, expenditures, and alterations in sales approach.
- Utilize the contribution margin ratio to evaluate the performance of a company.
Related questions
Jilk Inc'S Contribution Margin Ratio Is 58% and Its Fixed ...
Creswell Corporation's Fixed Monthly Expenses Are $29,000 and Its Contribution ...
If the Contribution Margin Ratio for France Company Is 45 ...
Lee Industry's Sales Are $525,000, Variable Costs Are 53% of ...
What Ratio Indicates the Percentage of Each Sales Dollar That ...