Last year, Brown Manufacturing had a contribution margin ratio of 40%. This year, fixed expenses are expected to remain at $50,000 and sales are expected to increase by $90,000. What should the contribution margin ratio be this year if the company wishes to increase net operating income by $31,500?

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The Answer of Last year, Brown Manufacturing had a contribution margin ratio of 40%. This year, fixed expenses are expected to remain at $50,000 and sales are expected to increase by $90,000. What should the contribution margin ratio be this year if the company wishes to increase net operating income by $31,500?

Last Year, Brown Manufacturing Had a Contribution Margin Ratio of 40