Question: Sterling Cooper Draper Pryce's Variable Expense ratio is 81% and its fixed monthly expenses are $52,500. If the company's sales for a month are $316,000,
Sterling Cooper Draper Pryce's Variable Expense ratio is 81% and its fixed monthly expenses are $52,500. If the company's sales for a month are $316,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. $203,460 $60,040 $7,540 $263,500 4. Darwin Inc. sells a particular textbook for $36. Variable expenses are $29 per book. At the current volume of 58,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: A. $406,000 B. $2,088,000 C. $2,494,000 D. $1,682,000
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