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Clutter Free Company reported the following information on its current-year contribution margin income statement Fixed costs $ 450,000 Sales $ 900,000 Contribution margin $ 540,000
Clutter Free Company reported the following information on its current-year contribution margin income statement Fixed costs $ 450,000 Sales $ 900,000 Contribution margin $ 540,000 Income taxes: $ 22.500 CHID Requirement a. What was the dollar amount of the margin of safety? Dollar amount of margin of safely Requirement b. The marketing department suggests that a new advertising campaign costing $10,000 can increase the contribution margin by 20% What a the of taxes (Enter a net decrease in operating income with a minus sign of paroh Net increase (decrease) in operating income Requirement c. Refer to the facts in part (b). As the chief financial officer what support would you seek for the marketing department predions? What other mons campaign? (Select all that apply) eto auch be Next Clutter Free Company reported the following information on its curent-year contribution margin income statemen Fixed costs 450,000 Sales $ 900.000 Contribution margin S 540,000) Income taxes $ 22.500 Net increase (decrease) in operating income Requirement c. Refer to the facts in part (b). As the chief financial officer, what support would you seek for the markating department pedem What her ma campaign? (Select all that apply) A. I would want to know how likely it is that advertising expenditures will end up exceeding $10,000 B. I would want to know the assumptions and supporting data used to project the 20% increase in contribution margin is based on increased o products, which might compromise product quality? C. I would want to know sustainable the increase in contribution margin will be D. None of the above are relevant. Next
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