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Assume a firm has a contribution margin ratio of .50 and a contribution margin of $4 per unit. The firm currently has sales of $400,000.
Assume a firm has a contribution margin ratio of .50 and a contribution margin of $4 per unit. The firm currently has sales of $400,000. The firm expects a $100,000 increase in sales next year. Assuming no change in fixed expenses, what will the dollar increase be next year in the firms net operating income?
$50,000 | ||
$400,000 | ||
$200,000 | ||
$250,000 |
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