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Question(s) / Instruction(s):

A cement manufacturing has supplied the following data:

Tons of cement produced and sold                                         220000

Sale revenue                                                                              $924000

Variable Manufacturing expense                                           $297000      

Fixed manufacturing expense                                                 $280000

Variable selling and admin expense                                       $165000

Fixed selling and admin expense                                             $82000

Net operating Income                                                                $100000

Required:

a)      Calculate the company’s unit contribution margin.

b)      Calculate the company’s unit contribution ratio.

c)       If the company increase its unit sales volume by 5% without increasing its fixed expense, What would the company’s net operating Income be?

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