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Svetach [21]
3 years ago
12

Jilk Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. 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 $137,000?
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

$36,070

Explanation:

Given that,

Contribution margin ratio = 61%

Fixed monthly expenses = $47,500

sales = $137,000

Contribution margin:

= Sales × Contribution margin ratio

= $137,000 × 61%

= $83,570

Net income = Contribution margin - Fixed monthly expenses

                    = $83,570 - $47,500

                    = $36,070

Therefore, the best estimate of the company's net operating income in a month is $36,070.

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Please see attachment .

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