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Gemiola [76]
3 years ago
11

A company's current sales are $300,000 and fixed expenses total $225,000. The contribution margin ratio is 30%. The company has

decided to expand production which is expected to increase sales by $70,000 and fixed expenses by $15,000. If these results occur, net operating income will:___________
Business
1 answer:
jeka57 [31]3 years ago
7 0

Answer:

$6,000

Explanation:

The net operating income will increase by $6,000;

$70,000*30%-$15,000=$6,000

As the CM ratio is 30% and $15,000 are fixed expenses,net result will be increase in net operating income.

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Answer:

Marley could not meet a rapid rise in demand

Explanation:

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2 years ago
Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $134,000 on sales of $2,310,000. Division B is able
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Answer:

a. Division A = 5.80 %, Division B = 8.95 %

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Explanation:

<u> a. Compute the profit margins</u>

Profit margin = Profit / Sales × 100

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<u> b. Based on the profit margins</u>

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2 years ago
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Answer and Explanation:

The indication of the following transactions for the cash flow statement is given below:

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Akimi4 [234]

Answer:

D

Explanation:

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