Question
A company's most recent results indicate that annual sales of 2,000 units earned total contribution margin of 50,000, and profits totalling 20,000. Assuming the company
A company's most recent results indicate that annual sales of 2,000 units earned total contribution margin of £50,000, and profits totalling £20,000.
Assuming the company remained within its relevant range, and if it had sold 2,400 units (with all other variables in the variable costing model being unchanged), what would have been its reported profit?
A) £10,000
B) £20,000
C) £30,000
D) £40,000
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
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