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XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by how much will profits increase? а. 15% O b. None of the given answer is correct. OC. 30% d. 60% e. 90%

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

XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by
how much will profits increase?
O a.
15%
O b. None of the given answer is correct.
С.
30%
d. 60%
е. 90%

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