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 administrative expense $165,000 Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

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 administrative expense $165,000 Fixed selling and administrative expense $82,000 Net operating income $100,000 If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer in 2 decimal places
jagdish
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