Question
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
- 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?
- 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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Horngrens Financial And Managerial Accounting
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
6th Edition
0134486838, 978-0134486833
