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?