Sterling company contribution margin ratio solve this accounting questions Sterling Company's contribution margin ratio is 40% and its fixedmonthly expenses are $28,000. If the fixed monthly expenses remainconstant, what would be the company's net operating income whensales are $95,000?

Step 1: Definition of Contribution Margin RatioThe contribution margin ratio represents the…

Answered: Sterling Company's contribution margin…

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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Sterling Company's contribution margin ratio is 40% and its fixed monthly expenses are $28,000. If the fixed monthly expenses remain constant, what would be the company's net operating income when sales are $95,000?