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
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By how much will the contribution margin increase?
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- I need this question answer financial accountingIf the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue needed to achieve the target operating income is $100,000, what are total fixed expenses? O A. $55,000 О В. $25,000 о с. $85,000 O D. $16,50010. If sales are $500,000, variable costs are 200,000, and fixed costs are 260,000, what is the contribution margin percentage? a. 52% b. 48% c. 40% d. 60%
- If Sales for the last year was Rs. 40,00,000 and variable cost ratio is 80%. What will be the new contribution if the sales increase by 20%? Oa.10,50,000 O b. 9,60,000 O c. 9,20,000 O d. 8,00,000Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price per unit $150.00 Contribution margin per unit $45.00 Total fixed costs $630,000 What is the break-even point in dollars? a.$2,100,000 b.$426,000 c.$189,000 d.$900,000Accounting question help
- Company's project profit?3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are 30% of sales and the profit is $63,000. When the selling price was reduced by 10%, the sales volume increased by 25%. a. What was the original sales revenue? Round to the nearest cent b. What were the original variable costs? -> SAVE PROGRESS SUBMITA
- Company's project profit? AccountingNeed answerPROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000),as well as potential market, Babaero Company established what it considered to b a reasonable selling price. The company expected to sell 20,000 units per month and planned its monthly results as follows: Sales @P25 Less: Variable costs @P15 Contribution margin P500,000 [300,000) 200,000 (125,000) 75,000 ( 30,000) P 45,000 Less: Fixed costs Income before taxes Less: Income taxes Net income 4. If the company wants a 20% before-tax return on sales, what level of sales, in pesos, does it need? 5. If the company wants a P60,000 after-tax profit, how many units must it sell? 6. If the company wants an after-tax return on sales of 10.5%, how many units must it sell?