What would the company net operating income be

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Reference no: EM133056757

Question - Best Detroit Asphalt Inc., a manufacturer of premium quality asphalt, has given you the following data as is requesting your help:

Tons of asphalt 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 -

a. Calculate the company's unit contribution margin.

b. Calculate the company's unit contribution ratio.

c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

Reference no: EM133056757

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