Last month, Bright Bites Inc. sold 25,000 units and reported the following: • Total sales: $200,000 • Total variable expenses: $150,000 • Fixed expenses: $30,000 1) What is the company's contribution margin ratio? 2) If total sales were to increase by $4,500, what would be the estimated increase in net operating income?

Last month, Bright Bites Inc. sold 25,000 units and reported the following: • Total sales: $200,000 • Total variable expenses: $150,000 • Fixed expenses: $30,000 1) What is the company's contribution margin ratio? 2) If total sales were to increase by $4,500, what would be the estimated increase in net operating income?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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