Consider the following information from the income statement of Ashbrook Compan Selling price per unit Variable expenses per unit Contribution margin per unit Contribution margin ratio $ 100 $ 50 $ 50 50%
Consider the following information from the income statement of Ashbrook Compan Selling price per unit Variable expenses per unit Contribution margin per unit Contribution margin ratio $ 100 $ 50 $ 50 50%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Knowledge Check 02
Consider the following information from the income statement of Ashbrook Company:
Selling price per unit
Variable expenses per unit
Contribution margin per unit
Contribution margin ratio
$ 100
$ 50
$ 50
50%
Fixed expenses
Net operating income
If sales increase from 1,000 units to 1,500 units, what is the company's revised profit amount?
$30,000
O $15,000
O $45,000
O $25,000
$ 20,000
$ 30,000
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