Laredo, Inc. has a contribution margin ratio of 60%. This month, sales revenue was $234,000, and...

Question

Question

Answer 1

Answer #1

$ 22,200

Increase in profit	=	Increase in sales	*	Contribution margin
	=	$ 37,000	*	60%
	=	$ 22,200

Before increase of sales, it is already earning profit.It means all the fixed cost has been recovered.
So, any increase of contribution margin will be the increase of profit.

Answer 2

Similar Homework Help Questions

Booble, Inc. has a contribution margin ratio of 56%. This month, sales revenue was $220,000, and...

Booble, Inc. has a contribution margin ratio of 56%. This month, sales revenue was $220,000, and profit was $50,800. How much are Booble's fixed costs? Multiple Choice Ο $123,200 Ο $28,448 Ο $72.400 Ο $61,600
Rodeo, Inc. has a contribution margin ratio of 30%. This month, profit was $12,300 and fixed...

Rodeo, Inc. has a contribution margin ratio of 30%. This month, profit was $12,300 and fixed costs were $15,600. How much was Laredo's sales revenue? Multiple Choice Ο S93,000 Ο Ο Ο
Booble, Inc. has a contribution margin ratio of 49%. This month, sales revenue was $213,000, and...

Booble, Inc. has a contribution margin ratio of 49%. This month, sales revenue was $213,000, and profit was $47,300. How much are Booble's fixed costs? Multiple Choice $57,070 $23,177 $52,185 $104,370

Jilk Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $51,000. Assuming that...

Jilk Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $51,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating Income in a month when sales are $144,000? Multiple Choice Ο Ο 586,400 Ο Ο 58, Ο 535,400 Ο Ο $93,000 Serfass Corporation's contribution format Income statement for July appears below. Sales $369,000 Variable expenses 147, 600 Contribution margin 221,400 Fixed expenses 55, 350 Net operating income...
Paint Corp. has sales of $672,000, a contribution margin ratio of 40%, and a profit of...

Paint Corp. has sales of $672,000, a contribution margin ratio of 40%, and a profit of $40,000. If 10,000 units were sold, what is the variable cost per unit? Multiple Choice ο ο ο ο
Payton Corp. has sales of $212,000, a contribution margin ratio of 34%, and a target profit...

Payton Corp. has sales of $212,000, a contribution margin ratio of 34%, and a target profit of $41,000. If 8,000 units were sold, what are total variable costs? Multiple Choice Ο Ο $1ιοοο Ο Ο $139920 Ο Ο 5253.000 Ο Ο 6212.000

If we have a contribution margin ratio of 40% and this month, sales revenue was $150,000,...

If we have a contribution margin ratio of 40% and this month, sales revenue was $150,000, and net income was $10,000. How much are our fixed costs?
Louise Corp. has a contribution margin ratio of 20%, fixed costs of $33,800, and a profit...

Louise Corp. has a contribution margin ratio of 20%, fixed costs of $33,800, and a profit of $21,400. What are total sales? Multiple Choice Ο $1040 Ο $157714 Ο Ο S276,000 Ο 555.200
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to...

Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 100,000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $660,000. Total fixed costs equal $7,200,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. $ What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a...

Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a...

Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 Net income $64,920 Required: 1. What is Hammond’s variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution...