Homework Answers
Contribution Margin ratio = Contribution margin/Sales = 300,000/500,000 = 60%
Breakeven dollars = Fixed cost/Contribution margin ratio = 240,000/60% = $400,000
Degree of operating leverage = Contribution margin/Net income = 300,000/60,000 = 5
Increase in net income = 6% increase * 5 = 30% increase
Your answer : Both statement #2 and #4
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three versions of tires: Supreme, Advanced, and Basic. A condensed
segmented income statement for a recent period follows:Assume all
of the fixed expenses for the hard rubber line are avoidable. What
will be total net income if the line is dropped?A)
$250,000B)$206,000C)$210,000D) $280,00044. Which of the following
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expenses 650,000 280,000 116,000 1,046,000Contribution
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