Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

1. 2. OOOOOO The Cole Co.'s selling price per unit is $76 and have a variable expense ratio of 44%. All fixed costs have been

1.

image text in transcribed2.

image text in transcribed

OOOOOO The Cole Co.'s selling price per unit is $76 and have a variable expense ratio of 44%. All fixed costs have been covered by previous sales. An increase in one unit of sales will: (mark all that apply) decrease fixed costs by $42.46. increase contribution margin by $42.56. decrease fixed costs by $33.44. increase NOI by $33.44. increase NOI by $42.56. increase contribution margin $33.44. OOOOOO The management of Ty Inc. believes that by increasing salesmen's salaries by $20,000, sales will increase by 500 units. The sales price per unit is $80 and the contribution margin is $50. Should Ty increase the salemen's salaries? 0 Yes, because the change in contribution margin is $20,000 more than the increase in salaries. Yes, because the change in contribution margin is $5,000 more than the increase in salaries. Yes, because the change in contribution margin is $7,500 more than the increase in salaries. No, because the change in contribution is $7,500 less than the increase in salaries. No, because the change in contribution margin is $20,000 less than the increase in salaries. No, because the change in contribution is $5,000 less than the increase in salaries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions