If variable costs are 40% of sales and sales increase by $80,000 this quarter due to a new marketing campaign, calculate the increase in contribution margin.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Provide correct answer general Accounting question

If variable costs are 40% of sales and sales
increase by $80,000 this quarter due to a
new marketing campaign, calculate the
increase in contribution margin.
Transcribed Image Text:If variable costs are 40% of sales and sales increase by $80,000 this quarter due to a new marketing campaign, calculate the increase in contribution margin.
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