Medway Corporation has a contribution margin ratio of 58% and fixed monthly expenses of $52,000. If the fixed monthly expenses remain constant, what is the best estimate of the company's net operating income in a month when sales are $145,000?
Medway Corporation has a contribution margin ratio of 58% and fixed monthly expenses of $52,000. If the fixed monthly expenses remain constant, what is the best estimate of the company's net operating income in a month when sales are $145,000?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Medway Corporation has a contribution margin ratio of 58% and fixed
monthly expenses of $52,000. If the fixed monthly expenses remain
constant, what is the best estimate of the company's net operating
income in a month when sales are $145,000?
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