Jilk Incorporated's Contribution Margin Ratio Is 61% and Its Fixed

question 138

Multiple Choice

Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $43,000. 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 $128,000?

• A) $78,080
• B) $6,920
• C) $35,080
• D) $85,000

Comprehend the treatment of excess consideration transferred over book value.

Recognize the effects of revaluation of assets and liabilities in consolidation.

Evaluate the impact of fair value adjustments on the investment account.

Calculate and understand the implications of amortization of goodwill and fair value allocations.

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