General accounting Creswell Corporation's fixed monthly expensesare $31,000 and its contribution margin ratio is65%. Assuming that the fixed monthly expensesdo not change, what is the best estimate of thecompany's net operating income in a monthwhen sales are $94,000?a. $1,900b. $61,100c. $30,100d. $63,000

Step 1: Definition of Operating IncomeOperating income represents the profit a company makes from…

Answered: Creswell Corporation's fixed monthly…

Principles of Accounting Volume 2

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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...Accounting question
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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