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ABC Company estimates the following data for the coming month Total variable costs $60,000.00 Income tax rate 40% Contribution margin percentage 50% Required net income
| ABC Company estimates the following data for the coming month | |
| Total variable costs | $60,000.00 |
| Income tax rate | 40% |
| Contribution margin percentage | 50% |
| Required net income | $6,000.00 |
| Find the estimated operating income for the coming month. | |
| a. | $2,500 | |
| b. | $3,500 | |
| c. | $8,000 | |
| d. | Between $9,000 and $10,001 |
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Auditing and Assurance Services
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
7th edition
978-1259573286, 1259573281, 978-1260152166
