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Creswell Corporation's fixed monthly expenses are $26,000 and its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net
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Creswell Corporation's fixed monthly expenses are $26,000 and its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $84,000

User Moien Tajik
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11 votes

Answer:

See below

Step-by-step explanation:

The company's net operating income would be;

= fixed expenses / Contribution margin ratio

= $26,000/60%

= $43,333

User Blue Piranha
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