A cement manufacturer has supplied the following data: Tons of

A cement manufacturer has supplied the following data: Tons of cement produced and sold 220,000
Sales revenue ...........$924,000
Variable manufacturing expense ...$297,000
Fixed manufacturing expense .....$280,000
Contribution Margin........$347,000
Variable selling and admin expense..$165,000
Fixed selling and admin expense .....$82,000
Net operating income ........$100,000

Required:
a. Calculate the company's unit contribution margin
b. Calculate the company's unit contribution ratio
c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be? 



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  • CreatedMay 12, 2012
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