Question
Below are income statements that apply to three companies: A, B, and C: A Co. B Co. C Co. Sales $100 $100 $100 Variable costs
Below are income statements that apply to three companies: A, B, and C:
|
| A Co. | B Co. | C Co. |
| Sales | $100 | $100 | $100 |
| Variable costs | (10) | (20) | (30) |
| Contribution margin | $ 90 | $ 80 | $ 70 |
| Fixed costs | (30) | (20) | (10) |
| Profit before taxes | $ 60 | $ 60 | $ 60 |
33. Within the relevant range, if sales go up by $2 for each firm, which company will experience the greatest increase in profit?
| a. | A Company | |
| b. | B Company | |
| c. | C Company | |
| d. | all will experience and equal increase |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
