1. Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, 2. assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company. The CVP income statement shown below are available for ABC Company and DEFCompany.ABC CompanyDEF CompanySales revenuePhp 600,000Php 600,000Variable cost320,000120,000Contribution margin280,000480,000Fixed cost180,000380,000Net incomePhp 100,000Php 100,000

CVP Income statement in the business shows cost volume profit relationship and shows contribution…

Answered: Assuming that sales revenue is…

Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, 2. assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.

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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Question

1. Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company,
2. assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.

The CVP income statement shown below are available for ABC Company and DEF
Company.
ABC Company
DEF Company
Sales revenue
Php 600,000
Php 600,000
Variable cost
320,000
120,000
Contribution margin
280,000
480,000
Fixed cost
180,000
380,000
Net income
Php 100,000
Php 100,000

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