A tile manufacturer has supplied the following data
by | Mar 18, 2020 | Uncategorized
(TCO C) A tile manufacturer has supplied the following data.
|
Boxes of tile produced and sold
|
625,000
|
|
Sales revenue
|
$2,975,000
|
|
Variable manufacturing expense
|
$1,720,000
|
|
Fixed manufacturing expense
|
$790,000
|
|
Variable selling and admin expense
|
$152,000
|
|
Fixed selling and admin expense
|
$133,000
|
|
Net operating income
|
$180,000
|
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? (Points : 25)
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