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What would the company net operating income be

    Assignment Instructions

    Assignment ID: FG133056757

    Question – Best Detroit Asphalt Inc., a manufacturer of premium quality asphalt, has given you the following data as is requesting your help:

    Tons of asphalt 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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