All Or Muffin company has the following financial information: 1,880,000 $ 639,200 Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Taxes Net Income $ 1,240,800 $ 460,800 $ 780,000 $ 210,600 $569,400 Question a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals. b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals. c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. d. If All Or Muffin increases unit sales by 10%. what will All Or Muffin's net income be? Note: Round your answer to 2 Answer % %
All Or Muffin company has the following financial information: 1,880,000 $ 639,200 Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Taxes Net Income $ 1,240,800 $ 460,800 $ 780,000 $ 210,600 $569,400 Question a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals. b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals. c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. d. If All Or Muffin increases unit sales by 10%. what will All Or Muffin's net income be? Note: Round your answer to 2 Answer % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:PR 3-6 (Algo) (LO 3.4) All Or Muffin company has the following financial information:
All Or Muffin company has the following financial information:
Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Taxes
Net Income
1,880,000
$ 639,200
$ 1,240,800
$ 460,800
$ 780,000
$ 210,600
$ 569,400
Question
a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals.
b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals.
c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be?
Note: Round your answer to 2 decimals.
d. If All Or Muffin increases unit sales by 10%, what will All Or Muffin's net income be? Note: Round your answer to 2
decimals.
Answer
%
%
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