Question
A responsibility center's contribution margin ratio is 30%, and its common fixed costs are currently $50,000. If the center's sales increase by $500,000 and its
A responsibility center's contribution margin ratio is 30%, and its common fixed costs are currently $50,000. If the center's sales increase by $500,000 and its common fixed costs decrease by $40,000, its responsibility margin will increase by $_________.
The answer is $190,000, but I cannot figure out how to calculate it.
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Contemporary Issues In Social Science
Authors: Simon Grima, Ercan Özen, Hakan Boz
1st Edition
1800439318, 9781800439313
