Question: Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $42,000. Assuming that the fixed monthly expenses do not change, what is

Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $42,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $126,000?

Step by Step Solution

★★★★★

3.39 Rating (140 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Answer The correct answer is 34860 Explanation According to the scenario the gi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The Western Division of Claremont Company had net operating income of $135,000 and average invested assets of $560,000. Claremont has a required rate of return of 15 percent. Western has an...

The Lex I. Cographer Dictionary Company has net operating income of $10 million and $20 million of debt with a 7 percent interest rate. The earnings of the company are not expected to grow, and all...

Jilk Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net...

Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). (See the Managerial Application Calculating Break-Even Points for a...

Kahlo Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The companys...

Flow Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The companys contribution...

Bevil Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The companys...

Empire Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's...

Edward Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's...

Eduardo Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's...

Determine the force in each of the members located to the left of member FG for the scissor roof truss shown. State whether each member is in tension or compression. 05 kip I kip 3 it 3 ft 3 it 3 ft...

In the reaction P 4 + 3NaOH +3H 2 O ?? 3NaH 2 PO 2 +PH 3, what is being reduced? what is being oxidized? what isthe oxidizing agent? what is the reducing agent? showwork and explanation please....

the setup and production of the book. For rush orders, Emma will produce smaller batches for an additional charge of \ ( \ $ 9 7 0 \ ) per setup. Budgeted and actual costs for the printing process...

P&G sampled 400 people to determine their cereal purchase behavior on a particular trip to the store. The results of the study are as follows: Are preferences and brands related? Brand Purchaser Buys...

Walt was convicted of murder and sent to prison for life. Walt continued to profess his innocence. His sister, Wanda, believed him. After spending three years in law school and two years gathering...

Stocks X and Y have the following probability distributions of expected future returns: a. Calculate the expected rate of return for Stock Y, rY (rX = 12%). b. Calculate the standard deviation of...

Stocks X and Y have the following probability distributions of expected future returns: a. Calculate the expected rate of return, rY, for Stock Y (rX = 12%).b. Calculate the standard deviation of...

Brian and Kim have a 12-year-old child, Stan. For 2014, Brian and Kim have taxable income of $52,000, and Stan has non-qualifying dividend income of $4,500 and investment expenses of $250. No...

you, the life cycle logistician, are assigned to review the prime contractor's progress to develop a Training needs analysis (TNA) for the flight computer of the Strike Talon Unmanned Combat Aircraft...

Consider the following income statements. Holmes, Inc. Richaun Corp. $600,000 Sales revenue $600.000 Variable costs 400,000 120,000 Contribution margin 200.000 480,000 Fixed costs 120.000 400,000 Net...

Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, wit contribution format income statement for the most recent month is given below: h some months...

Distribution Inc., 20C contribution margin ratio based on the single company product is85%, the associated fixed costs are $240,000. It was determined that the total sales for the year 20C...

these questions ASAP. thank you 1. Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March. Sales (5,700 units) $ 256,500 Variable...

thanks for your response. I send you a direct attachment. Student ID: 70676798 Exam: 061401RR - Tools for Management and Aids to Decision Making When you have completed your exam and reviewed your...

#2 Spartan Systems reported total sales of $380,000, at a price of $20 and per unit variable expenses of $12, for the sales of their single product Total Per unit Sales $380,00 $20 Variable Expenses...