Respuesta :
The amount of net operating income in a month is equal to $35,100.
What is a contribution margin?
A contribution margin (CM) is an amount of profit that is computed before deducting the fixed cost.
Given values:
Sales Revenue: $141,000
Fixed cost: $49,500
CM ratio: 60%
Computation of net operating income:
[tex]\rm\ Net \rm\ Operating \rm\ Income=(\rm\ Sales \rm\ Revenue \times \rm\ Contribution \rm\ Margin \rm\ Ratio) - \rm\ Fixed \rm\ Cost\\\rm\ Net \rm\ Operating \rm\ Income=(\$141,000 \times\ 60\%)-\$49,500\\\rm\ Net \rm\ Operating \rm\ Income=\$84,600-\$49,500\\\rm\ Net \rm\ Operating \rm\ Income=\$35,100[/tex]
Therefore, when the fixed cost is $49,500 and the contribution margin is $84,600, then the net operating income comes out to be $35,100.
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