By how much will the contribution margin increase? If variable costs are 40% of sales and sales increase by $60,000 this monthdue to a special promotion, by how much will the contribution marginincrease?A.$18,000B. $36,000C.$24,000D. $60,000

Explanation of Contribution Margin:The contribution margin is the amount remaining from sales…

Answered: If variable costs are 40% of sales and…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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By how much will the contribution margin increase?
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If variable costs are 40% of sales and sales increase by $60,000 this month due to a special promotion, by how much will the contribution margin increase? A. $18,000 B. $36,000 C. $24,000 D. $60,000