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If variable costs are 35% of sales and sales increase by $50,000 this month because of a special promotion, by how much will the contribution margin increase? A. $17,500. B. $25,500. C. $32,500. D. $50,000.

If variable costs are 35% of sales and sales increase by $50,000 this month because of a special promotion, by how much will the contribution margin increase? A. $17,500. B. $25,500. C. $32,500. D. $50,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If variable costs are 35% of sales and sales increase by $50,000 this month because of a special promotion, by how much will the contribution margin increase? A. $17,500. B. $25,500. C. $32,500. D. $50,000.
Transcribed Image Text:If variable costs are 35% of sales and sales increase by $50,000 this month because of a special promotion, by how much will the contribution margin increase? A. $17,500. B. $25,500. C. $32,500. D. $50,000.
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