Sarratt Corporation's contribution margin ratio is 73% and its fixed monthly expenses are $35,000. Assume that the company's sales for May are expected to be $94,000.Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

Question

Khamryn Simon-Mcdonald · Accepted Answer

Final Answer : Profit = (CM ratio × Sales) − Fixed expenses= ({{[a(1)]:#,###}}% × ${{[a(3)]:#,###}}) − ${{[a(2)]:#,###}}= ${{[a(6)]:#,###}} − ${{[a(2)]:#,###}} = ${{[a(7)]:#,###}}

Sarratt Corporation's contribution margin ratio is 73% and its fixed monthly expenses are $35,000. Assume that the company's sales for May are expected to be $94,000.Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

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Learning Objectives

Related questions

Sarratt Corporation's contribution margin ratio is 73% and its fixed monthly expenses are $35,000. Assume that the company's sales for May are expected to be $94,000.Required:Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

Definitions

Learning Objectives

Learning Objectives

Related questions

Sarratt Corporation's contribution margin ratio is 73% and its fixed monthly expenses are $35,000. Assume that the company's sales for May are expected to be $94,000.Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.