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Question - A company manufactures a single product and their income statement at a sales level of 21,000 units for the last quarter states as follows:
Sales = 2,520,000
Variable expenses = 1,512,000
Contribution margin = 1,008,000
Fixed expenses = 810,000
Operating net income = 198,000
What is the company's CM ratio? If quarterly sales decrease by 100,800 and there is no change in fixed expenses, what would the quarter's net operating income be?
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