Question
A company has sales of $6,000, a contribution margin of 25%, fixed costs of $1,250, and net income of $250.If $500 (of the $1,250 in
A company has sales of $6,000, a contribution margin of 25%, fixed costs of $1,250, and net income of $250. If $500 (of the $1,250 in fixed costs) are salary expenses and a new law will increase salary expenses by 30%, how much would sales have to be to maintain net income at $250 (the contribution margin will remain at 25%? )?
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
