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Unformatted text preview: sales (8,000 * 81) 648000 Variable Exp (8,000*63) 504000 contribution exp 144000 Fixed exp 135,000 Net operating income 9,000 If we assume that sales there is a 25% increase in sales, then sales (10,000 * 81) 810000 Variable Exp (10,000*63) 630000 contribution exp 180000 Fixed exp 135,000 Net operating income 45,000 Part 4. Sales – variable exp – fixed exp = net income 81X– 63X 135,000 = 72000 X = 11,500, where X is # of lantern to be sold. E 615 I do not understand this problem properly. I contacted the SLC and I still didn’t understand it. With the given info, how do I calculate the variable exp. CM ratio = 598,000/1,000,000 = .59 I am confused! Please help sales 1,000,000 Variable Exp 504000 contribution exp Fixed exp 598,500 Net operating income...
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 Spring '10
 webster
 Revenue, Net Income, Generally Accepted Accounting Principles

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