Solve this question general Accounting Evergreen Industries has fixed monthly expenses of$28,000 and a contribution margin ratio of 70%. Assumingfixed monthly expenses remain constant, what is the bestestimate of the company's net operating income in amonth when sales are $85,000?a. $31,500b. $59,500c. $37,500d. $57,000

Step 1: Define Contribution Margin and Net Operating IncomeContribution Margin: Contribution margin…

Answered: Evergreen Industries has fixed monthly…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...

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Evergreen Industries has fixed monthly expenses of $28,000 and a contribution margin ratio of 70%. Assuming fixed monthly expenses remain constant, what is the best estimate of the company's net operating income in a month when sales are $85,000? a. $31,500 b. $59,500 c. $37,500 d. $57,000