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Binford Corporation's contribution margin ratio is 58%, and its fixed monthly expenses are $94,000. Assume that the company's sales for May are expected to be $178,000.
Required:
Question 1: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
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Calculate the budgeted profit after specific fixed costs, for year 1 of the re-cover operation, assuming demand can be met in full and calculate the payback period for the re-cover project.
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