3. (TCO B) A tile manufacturer has supplied the following data: Boxes of tile produced and sold 625,000 Sales revenue $2,975,000 Variable manufacturing expense $1,720,000 Fixed manufacturing expense $790,000 Variable selling and admin expense $152,000 Fixed selling and admin expense $133,000 Net operating income $180,000
Required: a. Calculate the company’s unit contribution margin. b. Calculate the company’s contribution margin 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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