Question & Answer: Maack Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $54,000. If the com…..

9. Maack Corporations contribution margin ratio is 19% and its fixed monthly expenses are $54,000. If the companys sales for a month are $319,000, what is the best estimate of the companys net operating income? Assume that the fixed monthly expenses do not change. O $204.390 O $6,610 O $265.00o O $60,610

Maack Corporation’s contribution margin ratio is 19% and its fixed monthly expenses are $54,000. If the company’s sales for a month are $319,000, what is the best estimate of the company’s net operating income? Assume that the fixed monthly expenses do not change. $204.390 $6, 610 $265.000 $60, 610

Expert Answer

The correct answer would be $6,610

Net Operaing income = (Contribution margin ratio * Sales)- Fixed expenses

= (19%*$319,000)-$54,000

= $60,610-$54,000

= $6,610

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