creswell corporation's fixed monthly expenses are $23,000 and its contribution margin ratio is 63%. assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $78,000?

Question

26-10-2022
Business

Answered

creswell corporation's fixed monthly expenses are $23,000 and its contribution margin ratio is 63%. assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $78,000?

Answer :

Other Questions

What is the monthly finance charge if the average daily balance is $15, the daily periodic rate is 0.06%, and the number of days in the cycle is 30? a. 27¢ b. 4

the mosality corporation incurs the following estimated annual costs in making a part for one of its products: total costs for 20,000 units cost per unit direct

g at the end of 2021, your company recorded taxable income of $6,022. tax rate this year was 25%. you are facing uncertainty regarding future income and tax rat

What is omar’s net income for october? $1,000 $1,500 $2,500 $3,500

a construction company entered into a fixed-price contract to build an office buithe following transactions occurred during march 2024 for the right corporation

The wei corporation expects next year's net income to be $10 million. The firm is currently financed with 50% debt. Wei has $10 million of profitable investment

your roommate says, "sales taxes are reported as an expense in the income statement." do you agree?

a supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. the price schedule is: quantity purchased

the realized dollar returns for a u.s. resident investing in a foreign market will depend on the return in the foreign market as well as on the exchange rate fl

the personal distribution of income in the united states shows that question content area bottom part 1 a. the richest 20 percent of individuals receive approxi

RaunakRanjan RaunakRanjan · Answer 1 · 2022-10-29T11:26:01-04:00

The Contribution margin per unit is $49,140 and net operating income 26,140

What is contribution margin?
A gross or per-unit basis can be used to express the contribution margin. It represents the additional revenue made for each product or unit sold after the variable part of the business's costs have been subtracted. The selling price per unit less the variable cost per unit equals the contribution margin. The metric, also known as cents contribution per unit, shows how a specific product affects the company's overall profit. It offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.

Contribution margin = 78,000 x 63%
= 49,140
Net operating income = contribution margin - fixed cost
= 49,140 - 23,000
= 26,140

To learn more about Contribution margin
https://brainly.com/question/24962994
#SPJ4