Problem:
Maack Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $51,000.
Required:
If the company's sales for a month are $313,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
- $205,660
- $5,340
- $262,000
- $56,340
Note: Be sure to show how you arrived at your answer.