A company with monthly revenue of $124,000, variable costs of $51,000, and fixed costs of $40,400 has a contribution margin of:
Multiple Choice
$124,000.
$36,500.
$73,000.
$83,600
Contribution margin = Revenue - Variable costs = 124,000 - 51,000 = 73,000 Option C is the answer |
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A company with monthly revenue of $124,000, variable costs of $51,000, and fixed costs of $40,400...
A company with monthly revenue of $126,000, variable costs of $51,500, and fixed costs of $40,600 has a contribution margin of: Multiple Choice $85,400. $126,000. $37,250. $74,500.
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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 30% 60%, 40%. IO%. 70%.
Units:
Contribution Margin
Fixed Costs
Operating Income
Sales Revenue
Variable Costs
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