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What would be the estimated net operating income

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Question - Gun Corporation has the following information for the period.

Sales (5,000 units) $300,000

Variable Expenses 240,000

Contribution Margin $60,000

Fixed Expenses 58,800

Net Operating Income $1,200

What is the company's contribution margin ratio?

What is the company's break-even point in sales dollars?

If sales increase to 5.040 units, what would be the estimated increase in net operating income?

If the selling price increases by $4 per unit and the sales volume decreases by 400 units, what would be the estimated net operating income?

Reference no: EM132558807

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