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Posted by: Homeworkhelp
Price Quoted by Student: $5
Posted On: 2015-02-27 07:07:13
 
Question

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

Variable selling and admin expense                                $165,000

Fixed selling and admin expense                                    $82,000

Net operating income                                                     $100,000

 

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?

 

TUTORIAL PREVIEW

a. Calculate the company's unit contribution margin

Contribution margin = Sales - Variable expenses Contribution margin

         = $924,000 - ($297,000 + $165,000)

Solutions
a. Calculate the company's unit contribution m
Price $5
Attachment 1: A cement.doc
Solution Posted By: Homeworkhelp    Posted on: 27-02-2015