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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. $34,400b. $7600c. $80,400d. $88,000
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How Determine the ending cash balance in August and september both before and after any necessary financing or debt retirement.
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