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ABC Company has the following operating profit Sales $600,000 Variable Costs 220,000 Contribution Margin $380,000 Fixed Cost 200,000 Operating Profit $180,000 ABC could increase revenues

ABC Company has the following operating profit

Sales $600,000

Variable Costs 220,000

Contribution Margin $380,000

Fixed Cost 200,000

Operating Profit $180,000

  1. ABC could increase revenues by 10% by reducing sales discounts by 10%. There will be no changes in variable or fixed costs. What would be the percentage increase in operating profits?
  2. Refer to the original information in this problem. Suppose ABC sales people discounted sales another 3% with no change in variable or fixed costs. What is the change in operating profits or loss

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