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A tile manufacturer has supplied the given data:

Boxes of tile produced and sold 625,000

Sales revenue $2,975,000

Variable manufacturing expense $1,720,000

Fixed manufacturing expense $790,000

Variable selling and admin expense $152,000

Fixed selling and admin expense $133,000

Net operating income $180,000

Required:

a) Compute the company's unit contribution margin.

b) Compute the company's unit contribution ratio.

c) If the company increases its unit sales volume by 5 percent without increasing its fixed expenses, what would the company's total operating income be? 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M919336

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