A cement manufacturer has supplied the following data:
| Tons of cement produced and sold | 220,000 |
| Sales revenue | $924,000 |
| Variable manufacturing expense | $297,000 |
| Fixed manufacturing expense | $280,000 |
| Variable selling and admin expense | $165,000 |
| Fixed selling and admin expense | $82,000 |
| Net operating income | $100,000 |
Required:
a. Calculate the company’s unit contribution margin.
b. Calculate the company’s unit contribution ratio.
c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company’s net operating income be?
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