Calculate the company contribution margin ratio

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Question - Abu Dhabi manufacturer has supplied the following data:

Boxes of tiles produced and sold 520,000

Sales revenue $2,132,000

Variable manufacturing expense $650.000

Fixed manufacturing expense $464,000

Variable selling and administrative expense $260,000

Fixed selling and administrative expense $312,000

Net operating income $446,000

Required -

(a) What is the company's unit contribution margin? Show the workings.

(b) Calculate The company's contribution margin ratio.

(c) If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: show workings

.

Reference no: EM132616970

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