XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by how much will profits increase? a. 15% b. 90% O C. None of the given answer is correct. d. 60% e. 30% Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit?

XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by how much will profits increase? a. 15% b. 90% O C. None of the given answer is correct. d. 60% e. 30% Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit?

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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