Midnight Co. has a contribution margin of $240,000, which is 40% of total sales. Fixed costs are $190,000. What are total variable costs if nothing else changes but Midnight is able to decrease its fixed costs to $160,000? $240,000 O $270,000 O $360,000 $330,000 None of the above

Midnight Co. has a contribution margin of $240,000, which is 40% of total sales. Fixed costs are $190,000. What are total variable costs if nothing else changes but Midnight is able to decrease its fixed costs to $160,000? $240,000 O $270,000 O $360,000 $330,000 None of the above

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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Question

Midnight Co. has a contribution margin of $240,000, which is 40% of total sales. Fixed costs are
$190,000. What are total variable costs if nothing else changes but Midnight is able to decrease its
fixed costs to $160,000?
O $240,000
O $270,000
$360,000
O $330,000
O None of the above

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