Need help with this general accounting question please answer Creswell Solutions Inc. has fixed monthly expenses of $28,000, and its contributionmargin ratio is 70%. Assuming that the fixed monthly expenses do not change, what isthe best estimate of the company's net operating income in a month when sales are$80,000?a. $16,000b. $56,000c. $28,000d. $30,000

Step 1: Define Contribution Margin RatioThe contribution margin ratio is the percentage of sales…

Answered: Creswell Solutions Inc. has fixed…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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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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