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Gemiola [76]
4 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]4 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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Which of the following terms refers to an ongoing process of making decisions that guides the firm both in the short term and fo
emmasim [6.3K]

Answer: Business plan.

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3 years ago
Economic production has fallen to less than full potential due to inadequate incentives for firms to produce. The duration of th
Brilliant_brown [7]

Answer:

short-term

Explanation:

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6 0
3 years ago
Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for $178,000, Colton bought a $16
vovikov84 [41]

Answer and Explanation:

The computation is shown below:

a. The percentage of loss covered is

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We simply applied the above formula

5 0
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The stock of Canadian Ski Wear is currently trading at $45 a share and the equity beta of the company is estimated to be 1.3. Th
Vesnalui [34]

Answer:

10.5%

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The dividend and per share is not relevant for the computation part. Hence, ignored it

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3 years ago
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