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mixer [17]
3 years ago
12

TB MC Qu. 6-62 Gayne Corporation's contribution margin ratio is ... Gayne Corporation's contribution margin ratio is 18% and its

fixed monthly expenses are $51,000. If the company's sales for a month are $313,000, what is the best estimate of the company's net operating income
Business
1 answer:
lutik1710 [3]3 years ago
4 0

Answer:

$5,340

Explanation:

Gayne's corporation contribution margin ratio is 18%

= 18/100

= 0.18

The fixed monthly expenses is $51,000

The company sales for the month is $313,000

Therefore, the net operating income can be calculated as follows

= (Contribution margin ratio×sales)-fixed expenses

= (0.18× $313,000)- $51,000

= $56,340-$51,000

= $5,340

Hence the best estimate of the company's net operating income is $5,340

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