Question
# 33 A company makes baseballs that are sold for $5 each. Baseballs have a 40% contribution margin and fixed costs of $50,000. The company
# 33
A company makes baseballs that are sold for $5 each. Baseballs have a 40% contribution margin and fixed costs of $50,000. The company plans to make and sell 50,000 baseballs.
What will be the effect on net operating income if the company increases sales by 32%?
It would increase by 32%
It would increase by 64%
It would decrease by 32%
It would decrease by 64%
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Horngrens Accounting
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
11th Canadian Edition Volume 2
0135359783, 978-0135359785
