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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 % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 % %
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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