Respuesta :
Answer:
(1) 0.4 or 40%
(2) $400
Explanation:
1)
Unit selling price = Total sales ÷ Number of units
= $200,000 ÷ 50,000
= $4
Unit variable expense = Total variable expenses ÷ number of units
= $120,000 ÷ 50,000
= $2.4
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $4 - $2.4
= $1.6
Now, computing the contribution margin ratio as :
Contribution margin ratio = Unit Contribution margin ÷ Unit selling price
= $1.6 / $4
= 0.4 or 40%
(2) Change in net operating income:
= Increase in total sales × Contribution margin ratio
= $1,000 × 0.4
= $400
Therefore, the net operating income increases by $400.
Net operating income is termed as the evaluation or the process to analyze the profitability of the income-generating business or the firms. Net operating income is calculated as the difference between the revenues from property and the operating expenses.
(1) The company’s contribution margin (CM) ratio is 0.4 or 40%
(2) If the total sales increase by $1000 the estimated change in the company’s net operating income is $400
1) Unit selling price = [tex]\frac{\text{Total sales} }{\text{Number of units}} = \frac{ \$200,000 }{\$50,000} = \$4[/tex]
Unit variable expense = [tex]\frac{\text{Total variable expenses}}{\text{number of units}}= \frac{\$120,000 }{\$50,000}= \$2.4[/tex]
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $4 - $2.4
= $1.6
Now, computing the contribution margin ratio is :
Contribution margin ratio = [tex]\frac{\text{Unit Contribution margin}}{\text{Unit selling price}} = \frac{\$1.6}{\$4} = 0.4 \:or \:40\%[/tex]
(2) Change in net operating income:
[tex]= \text{Increase in total sales} \times \text{Contribution margin ratio}= \$1,000 \times 0.4= \$400[/tex]
Therefore, the net operating income increases by $400.
To know more about the net operating income and the margin ratio, refer to the link below:
https://brainly.com/question/20397919
