The management of Toro Corporation expects sales in August to be $130,000. The company's contribution margin ratio is 65% and its fixed monthly costs are $54,000.Required:Estimate the company's operating profit for August, assuming that the fixed monthly costs do not change.
What will be an ideal response?
| Sales | $ | 130,000 | |
| CM ratio | 65 | % | |
| Contribution margin (sales × contribution margin ratio) | $ | 84,500 | |
| Fixed costs | 54,000 | ||
| Operating profit | $ | 30,500 |
You might also like to view...
How can a presenter can make a good first impression even before they begin to present?
A) Greet audience members as they arrive, introduce yourself, and get used to talking with them. B) Dress for the part C) Decide where to stand D) Keep the lights up so the audience can focus their attention on you E) Control nervous habits
A type of shopping center with a large proportion of destination stores is the _____
a. power center b. neighborhood shopping center c. central business district d. regional shopping center
Nordstrom and Macy's are examples of
A. department stores. B. specialty discount stores. C. fast fashion stores. D. full-line discount stores. E. off-price retailers.
Which of the following statements is not correct concerning the elements of the cash conversion cycle time?
A. The higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash. B. Lean manufacturers may reduce the total cash conversion cycle time. C. The cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows from customers. D. Effectively managing working capital is important for businesses to survive and profit. E. The cash conversion cycle is based on accounts receivable, accounts payable, and inventory.