Maack Corporation's Contribution Margin Ratio Is 16% and Its Fixed

question 160

Multiple Choice

Maack Corporation's contribution margin ratio is 16% and its fixed monthly expenses are $44,000. If the company's sales for a month are $299,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

• A)$207,160
• B)$3,840
• C)$255,000
• D)$47,840

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