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Greenback | ||||
Answer a | Greenback | One Mart | ||
Amount | Percentage | Amount | Percentage | |
Sales | 610,000.00 | 100% | 610,000.00 | 100% |
Variable cost | 335,500.00 | 55% | 122,000.00 | 20% |
Contribution margin | 274,500.00 | 45% | 488,000.00 | 80% |
Fixed costs | 115,900.00 | 329,400.00 | ||
Operating profits | 158,600.00 | 26.00% | 158,600.00 | 26.00% |
Answer b | ||||
If the sales volume of both companies will increase by 20% then contribution will also increase by same percent. Operating will increase by same amount as increase in contribution. | ||||
So, | Greenback | One Mart | ||
Current Sales | 610,000.00 | 610,000.00 | ||
Increase by | 20% | 20% | ||
Increase amount | 122,000.00 | 122,000.00 | ||
Contribution margin | 45% | 80% | ||
Contribution amount | 54,900.00 | 97,600.00 | ||
Operating profit will increase by | $ 54,900.00 | $ 97,600.00 | ||
2. value: 33.33 points You did not receive full credit for this question in a previous...
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