Companies total operating income


A cement manufacturer has supplied the given data:

Tons of cement produced and sold    220,000

Sales revenue $924,000

Variable manufacturing expense $297,000

Fixed manufacturing expense $280,000

Variable selling and admin expense $165,000

Fixed selling and admin expense $82,000

Net operating income $100,000

Required:

a. Compute the company's unit contribution margin.

b. Compute the company's contribution margin ratio.

c. If the company raises its unit sales volume by 5% devoid of raising its fixed expenses, what would the company's total operating income be?   

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Companies total operating income
Reference No:- TGS016358

Expected delivery within 24 Hours