If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900.  What is the company's contribution margin (CM) ratio? What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100.    Contribution margin ratio ___________________% Estimated change in net operating income __________________

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned...
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If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900. 

What is the company's contribution margin (CM) ratio?

What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100. 

 

Contribution margin ratio ___________________%
Estimated change in net operating income ___________________%
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