Answer:
The company's net operating income for May is $30,500
Explanation:
For computing the net operating income, first, we have to compute the contribution by applying the contribution margin formula. The formula is shown below:
Contribution margin = (Contribution ÷ Sales)
75% = (Contribution ÷ $114,000)
So contribution would be equal to
= $114,000 × 75%
= $85,500
And the fixed expenses are $55,000
So, the net operating income equal to
= Contribution - fixed expenses
= $85,500 - $55,000
= $30,500
Based on the amount to be sold and the intended level of earnings, the selling price per unit should be<u> $3.40</u>
The Contribution margin needed is:
<em>= Fixed cost + Required earnings </em>
= 250,000 + 260,000
= $510,000
To get to this amount, the sales should be:
<em>Contribution margin = Sales x ( Selling price - Variable cost)</em>
510,000 = 250,000 × 0.6x
510,000 = 150,000x
x = 510,000 / 150,000
x = $3.40
In conclusion, the selling price is $3.40
Find out more about intended selling price/ quantity at brainly.com/question/25638811.
Answer:
The one with the larger sample size
Explanation:
Larger sample sizes provide more accurate mean values, identify outliers that could skew the data in a smaller sample and provide a smaller margin of error.