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

Publisher:OpenStax

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,...

See similar textbooks

Similar questions

If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
Maack Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the company's sales for a month are $309,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. a. $6,620 b. $204,380 c. $55,620 d. $260,000
Creswell Corporation's fixed monthly expenses are $31,000 and it's contribution margin ratio is 65%...
Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. 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 $95,000? a. $12,800 b. $24,200 c. $53,200 d. $66,000
Creswell Corporation's fixed monthly expenses are $25,500 and its contribution margin ratio is 68%. 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 $83,000? Multiple Choice O $57,500 $56,440 $1,060 $30,940
need help
A company's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the company's sales for a month are $309,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $204,380 $6,620 $260,000 $55,620 s Prou
Creswell corporation...Accounting question
Sarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000. Assume that the company's sales for May are expected to be $97,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating income
Gayne Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $50,500. If the company's sales for a month are $312,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $202,220 $8,780 $261,500 $59,280
A company sells one product and its contribution margin ratio is 20%. The company provides the following data regarding their operation: Current sales revenue Expected sales revenue next year Expected increase in net operating income next year $2,760,000 $2,870,400 20% Assuming that there is no change in total fixed expenses, what is the net operating income for the current year? Answer: $(Click to select)
A company sells one product and its contribution margin ratio is 10%. The company provides the following data regarding their operation: Current sales revenue $3,540,000 $3,681,600 Expected sales revenue next year Expected increase in net operating income next year 12% Q. What is the net operating income for the current year? ANS. $

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

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