Required informationA company sold a total of 1,000 units for total sales revenue of $70,000.The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310.Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190.Use this information to answer the following questions. Assume that all units are within the relevant range.alculate the estimated percent increase in net operating income for a 5% increase in sales. (Hint: Use the degree of operatingeverage you already computed.) (Round your intermediate calculations and final answer to 2 decimal places.)Increase in net operating income% Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call centerfor a number of recent months are listed below:Call CenterCalls TakenCostApril2$91,717$91,548$91,7772491,759$491,567$91,6052$91,83191,7878,4608,4298,470MayJuneJulyAugustSeptemberOctober8,4698,4338,4448,4868,474NovemberManagement believes that the cost of the call center is a mixed cost that depends on the number of calls taken.Required:Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to2 decimal places and the "Fixed cost" to the nearest dollar amount.)Variable costper callFixed costper month

A company sold a total of 1,000 units for total sales revenue of $70,000. The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310. Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190. Use this information to answer the following questions. Assume that all units are within the relevant range. alculate the estimated percent increase in net operating income for a 5% increase in sales. (Hint: Use the degree of operating verage you already computed.) (Round your intermediate calculations and final answer to 2 decimal places.) ncrease in net operating income %

A company sold a total of 1,000 units for total sales revenue of $70,000. The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310. Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190. Use this information to answer the following questions. Assume that all units are within the relevant range. alculate the estimated percent increase in net operating income for a 5% increase in sales. (Hint: Use the degree of operating verage you already computed.) (Round your intermediate calculations and final answer to 2 decimal places.) ncrease in net operating income %

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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Required information A company sold a total of 1,000 units for total sales revenue of $70,000. The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310. Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the contribution margin ratio. Contribution margin ratio %
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