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:
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?