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The Management of Pacubas Corporation Expects Sales in July to Be

Question 142

Essay

The management of Pacubas Corporation expects sales in July to be $121,000. The company's contribution margin ratio is 64% and its fixed monthly expenses are $40,000.
Required:
Estimate the company's net operating income for July, assuming that the fixed monthly expenses do not change. Show your work!

Correct Answer:

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Profit = (CM ratio × Sales) - ...

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