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1. Jumpman Corporation produces and sells a single product. The company has provided their income statement for the month of July: Sales ( 3,200 units)
1. Jumpman Corporation produces and sells a single product. The company has provided | |||
their income statement for the month of July: | |||
Sales ( 3,200 units) | 238,080 | ||
Variable expense | 145,920 | ||
Contribution Margin | 92,160 | ||
Fixed expenses | 74,400 | ||
Net Operating Income | 17,760 | ||
1. If the company sells 4,000 units , its net operating income would be? | |||
2. Which of the following would produce the largest increase in contribution margin? | |||
a. 7% increase in selling price | |||
b. 17% decrease in fixed cost | |||
c. 15% decrease in selling price | |||
d. 14% decrease in variable cost |
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