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Oksi-84 [34.3K]
4 years ago
7

ACME Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expense

s do not change, what is the best estimate of the company's net operating income in a month when sales are $103,000?
Business
1 answer:
Elodia [21]4 years ago
8 0

Answer:

$23,740

Explanation:

Given that,

Sales = $103,000

Fixed expenses for the month = $36,000

Contribution margin ratio = 58%

Net operating income:

= (Contribution margin ratio × Sales) - Fixed expenses for the month

= (0.58 × $103,000) - $36,000

= $59,740 - $36,000

= $23,740

Therefore, the best estimate of the company's net operating income in a month when sales are $103,000 is $23,740.

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