A cement manufacturer has supplied the following data:
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A cement manufacturer has supplied the following data:
Tons of cement produced and sold
220,000
Sales revenue
$924,000
Variable manufacturing expense
$297,000
Fixed manufacturing expense
$280,000
Variable selling and admin expense
$165,000
Fixed selling and admin expense
$82,000
Net operating income
$100,000
Required:
a. Calculate the company's unit contribution margin.
b. Calculate the company's unit contribution ratio.
c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?
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