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Bianchini Corporation's Contribution Margin Ratio Is 58% and Its Fixed

Question 98

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Bianchini Corporation's contribution margin ratio is 58% and its fixed monthly expenses are $94,000. Assume that the company's sales for May are expected to be $178,000.
Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Show your work!

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Profit = (CM ratio × Sales) - ...

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