Contribution margin ratio basics

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Reference no: EM13153676

Mitch Corporation's contribution margin ratio is 14% and its fixed monthly expenses are $87,000. If the company's sales for a month are $678,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

a. $94,920

b. $591,000

c. $7,920

d. $496,080

Reference no: EM13153676

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