Question: What is the company's CM Ratio? If monthly sales increases by $60,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
| Total | Per Unit |
Sales |
$600,000 |
$50 |
Variable Expenses |
456,000 |
38 |
Contribution Margin |
144,000 |
$12 |
Fixed Expenses |
100,000 |
|
Net Operating Income |
44,000 |
|