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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 486, 000 $ 30 Variable expenses 194, 400 12 Contribution margin 291, 600 $ 18 Fixed expenses 233, 280 Operating income $ 58,320 1. What is the company's CM ratio? If sales increase by $ 54,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.)

Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 486, 000 $ 30 Variable expenses 194, 400 12 Contribution margin 291, 600 $ 18 Fixed expenses 233, 280 Operating income $ 58,320 1. What is the company's CM ratio? If sales increase by $ 54,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 486, 000 $ 30 Variable expenses 194,400 12 Contribution margin 291, 600 $ 18 Fixed expenses 233, 280 Operating income $ 58,320 1. What is the company's CM ratio? If sales increase by $ 54,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.)
Transcribed Image Text:Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 486, 000 $ 30 Variable expenses 194,400 12 Contribution margin 291, 600 $ 18 Fixed expenses 233, 280 Operating income $ 58,320 1. What is the company's CM ratio? If sales increase by $ 54,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.)
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