If pretax profits increase by 15% when the DOL is 2.5, what is the increase in sales? a. 37.5% b. 6% c. 10% d. 3.75%
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what is the increase in sales? general accounting question
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- Provide answerIf Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? O a. net income will increase by 20% b. more information is need to answer this question C. net income will increase d. net income will increase by 10%
- Rose company has a target rate of solve this question general AccountingWhich will create the most favorable effect in gross profit? A. 10% increase in selling price B. 10% decrease in cost price C. 10% increase in both selling price and cost price D. 20% decrease in selling and administrative expenses2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. 6.6 % A If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.