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A cement manufacturer has supplied the following data. Tons of cement produced and sold 220,000

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$8.99


Product Description

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

 

Required: 

Calculate the company's unit contribution margin. 

Calculate the company's contribution margin ratio. 

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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