Creswell Corporation's fixed monthly expenses are $31,000 and its contribution margin ratio is 65%. 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 $94,000? a. $1,900 b. $61,100 c. $30,100 d. $63,000
Creswell Corporation's fixed monthly expenses are $31,000 and its contribution margin ratio is 65%. 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 $94,000? a. $1,900 b. $61,100 c. $30,100 d. $63,000
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Creswell Corporation's fixed monthly expenses are $31,000 and it's contribution margin ratio is 65%...
Transcribed Image Text:Creswell Corporation's fixed monthly expenses
are $31,000 and its contribution margin ratio is
65%. 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 $94,000?
a. $1,900
b. $61,100
c. $30,100
d. $63,000
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