Company X has the following financial data: Contribution Margin: $15,000 Operating Income: $8,000 If the volume increases by 20%, what will be the percentage increase in operating income?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Solve question financial accounting

Company X has the following financial data:
Contribution Margin: $15,000
Operating Income: $8,000
If the volume increases by 20%, what will be the percentage
increase in operating income?
Transcribed Image Text:Company X has the following financial data: Contribution Margin: $15,000 Operating Income: $8,000 If the volume increases by 20%, what will be the percentage increase in operating income?
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