If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900. What is the company's contribution margin (CM) ratio? What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100. Contribution margin ratio ___________________% Estimated change in net operating income __________________
If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900. What is the company's contribution margin (CM) ratio? What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100. Contribution margin ratio ___________________% Estimated change in net operating income __________________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900.
What is the company's contribution margin (CM) ratio?
What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100.
| Contribution margin ratio | ___________________% |
| Estimated change in net operating income | ___________________% |
Expert Solution
Step 1: Introducing Marginal Costing
MARGINAL COSTING INCOME STATEMENT
Marginal Costing Income statement is one of the important Cost Management Accounting..
Under Marginal Costing Income Statement, Net Income is computed by deducting Total Fixed Cost from Total Contribution Margin.
Contribution Margin is computed by deducting Total Variable Cost from Total Sales
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