Bowe Corporation's Fixed Monthly Expenses Are $21,000 and Its Contribution

question 121

Multiple Choice

Bowe Corporation's fixed monthly expenses are $21,000 and its contribution margin ratio is 61%. 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 $74,000?

• A)$7,860
• B)$45,140
• C)$24,140
• D)$53,000

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Core Capabilities

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