Velocity Fitness Gear sold 42,000 units last month. The company's financial results for the month were: • Total Sales: $378,000 Total Variable Expenses: $308,700 Fixed Expenses: $52,000 A. What is the company's Contribution Margin (CM) ratio? B. What is the estimated change in net operating income if total sales increase by $4,200?

Velocity Fitness Gear sold 42,000 units last month. The company's financial results for the month were: • Total Sales: $378,000 Total Variable Expenses: $308,700 Fixed Expenses: $52,000 A. What is the company's Contribution Margin (CM) ratio? B. What is the estimated change in net operating income if total sales increase by $4,200?

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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