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Kelsey Inc. expects its sales in September to be $143,000. The company's contribution margin ratio is 65% and its fixed monthly expenses are $60,000.

Required:

Estimate the company's net operating income for September, assuming that the fixed monthly expenses do not change

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The company's net operating income for September = Sales × Contribution Margin ratio - Fixed Cost

=$143,000 × 65% - $60,000

=$92950 - $60000

=$32950 (Answer)

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