Please help me Bix Corp. has a contribution margin ratioof 50%. This month, sales revenue was$250,000, and profit was $60,000. Ifsales revenue increases by $30,000, byhow much will profit increase?

Concept of Contribution Margin Ratio:The contribution margin ratio shows what portion of each dollar…

Answered: Bix Corp. has a contribution margin…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month...

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
By how much will profit increase?
MCQ
Bix Corp. has a contribution margin ratio of 50%. This month, sales revenue was $250,000, and profit was $60,000. If sales revenue increases by $30,000, by how much will profit increase? A) $12,000 B) $5,500 C) $7,500 D) $15,000
Frontier Corp. has a contribution margin of $1,458,000 and profit of $364,500. If sales increase 18%, by how much will profits increase?
Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what amount of sales will be necessary in order for the company to earn a profit of $80,000?
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Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If the company’s sales for a month are $98,000, what is the best estimate of the company’s net operating income?
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Bix Corp. has a contribution margin ratio of 50%. This month, sales revenue was $250,000, and profit was $60,000. If sales revenue increases by $30,000, by how much will profit increase?