Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase $20,000, then: a. operating

A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase $20,000, then: a. operating income will increase by $6000. b. operating income will be 0. c. fixed expenses will increase $8000. d. the contribution margin ratio will increase by 1/8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with IFRS Fold Out Primer

Authors: John Wild

5th edition

978-0077408770, 77408772, 978-0077413804

Students also viewed these Accounting questions