Question
1) A company has two divisions, East Division and West Division. During May, the contribution margin in East Division was $300,000. The contribution margin ratio
1) A company has two divisions, East Division and West Division. During May, the contribution margin in East Division was $300,000. The contribution margin ratio in West Division was 40%, its sales were $500,000, and its segment margin was $130,000. The common fixed expenses in the company were $60,000, and the company's net operating income was $125,000. The segment margin for East Division was _______.
You must enter your answer in the following format: $x,xxx
2) Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement.
(1) Contribution margin ratio will _______ with an increase in sales volume.
(2) Fixed cost per unit will _______ with an increase in sales volume (within the relevant range).
(3) A decrease in the contribution margin will cause the break-even point to _______.
(4) Variable cost per unit will _______ with a decrease in sales volume.
(5) An increase in fixed costs will cause the break-even point to _______ .
(6) An increase in sales volume (within the relevant range) will cause total fixed costs to _______ .
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