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The following income statement for the Kyles Corporation is provided: Sales revenue (2,000 * $5) 10,000 Variable COGS (2,000 * $1.25) -2,500 Fixed COGS -4,000 Gross Margin 3,500 Depreciation -1,000 Supplies (2,000 * $0.50) -1,000 Net Income 1,500 If sales increase to 2,500 units, what will be the company's contribution margin?

The following income statement for the Kyles Corporation is provided: Sales revenue (2,000 * $5) 10,000 Variable COGS (2,000 * $1.25) -2,500 Fixed COGS -4,000 Gross Margin 3,500 Depreciation -1,000 Supplies (2,000 * $0.50) -1,000 Net Income 1,500 If sales increase to 2,500 units, what will be the company's contribution margin?

Cornerstones of Cost Management (Cornerstones Series)
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 29E
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What will be the company's contribution margin?

The following income statement for the Kyles Corporation is provided: Sales revenue (2,000 * $5) 10,000 Variable COGS (2,000 * $1.25) -2,500 Fixed COGS -4,000 Gross Margin 3,500 Depreciation -1,000 Supplies (2,000 * $0.50) -1,000 Net Income 1,500 If sales increase to 2,500 units, what will be the company's contribution margin?
Transcribed Image Text:The following income statement for the Kyles Corporation is provided: Sales revenue (2,000 * $5) 10,000 Variable COGS (2,000 * $1.25) -2,500 Fixed COGS -4,000 Gross Margin 3,500 Depreciation -1,000 Supplies (2,000 * $0.50) -1,000 Net Income 1,500 If sales increase to 2,500 units, what will be the company's contribution margin?
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