What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month? And there is no change in fixed expense. By how many would you expect monthly net operating income to increase by?               Per unit  Total  Volume  Sales    $40.00 608000   Variable cost    28 425600   Contribution margin    12 182400   Fixed expense      156000   Net operating    12 26400

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month?

And there is no change in fixed expense.

By how many would you expect monthly net operating income to increase by?

         
    Per unit  Total  Volume 
Sales    $40.00 608000  
Variable cost    28 425600  
Contribution margin    12 182400  
Fixed expense      156000  
Net operating    12 26400  
         
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