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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

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

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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 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
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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