Last month when Sunshine Enterprises, Inc., sold 50,000 units, total sales were $350,000, total variable expenses were $260,000, and fixed expenses were $45,000. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $3,500?

Last month when Sunshine Enterprises, Inc., sold 50,000 units, total sales were $350,000, total variable expenses were $260,000, and fixed expenses were $45,000. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $3,500?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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