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

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

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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Question

Profit 60000 if sales revenue increase by 30000 how much will profit increase?

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

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Similar questions

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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
Accurate answer