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Flura [38]
3 years ago
10

Jelly Inc.'s contribution margin ratio is 62% and its fixed monthly expenses are $49,000. Assuming that the fixed monthly expens

es do not change, what is the best estimate of the company's net operating income in a month when sales are $140,000?
Business
1 answer:
aliina [53]3 years ago
6 0

Answer:

$37,800

Explanation:

Given the above information, we known that

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio = $140,000 × 62% = $86,800

Less: Fixed cost

($49,000)

Operating income

$37,800

Therefore, the best estimate of the company's net operating income is $37,800

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Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.

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A) The business must gain government permission and issue a stock sale, followed by a shareholder vote.

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