Reference no: EM132454863
Problem - A cement manufacturer has supplied the following data.
Tons of cement produced and sold 220,000
Sales revenue $924,000
Variable manufacturing expense $297,000
Fixed manufacturing expense $280,000
Variable selling and admin expense $165,000
Fixed selling and admin expense $82,000
Net operating income $100,000
Required -
1. Calculate the company's unit contribution margin.
2. Calculate the company's contribution margin ratio.
3. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?
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