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What is the best estimate of company net operating income

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Reference no: EM132745128

Problem 1: Espy's contribution margin ratio is 60% and its fixed monthly expenses are $46,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $134,000?

a. $34,400
b. $7600
c. $80,400
d. $88,000

Reference no: EM132745128

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