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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?   

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916358

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