Question
ComputerGuard offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $268,800, as follows: Consulting Training Repair Total Sales $523,100
ComputerGuard offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $268,800, as follows:
| Consulting | Training | Repair | Total |
Sales | $523,100 | $502,200 | $387,900 | $1,413,200 |
Less Variable Costs: | ||||
Salaries | 268,500 | 218,300 | 215,900 | 702,700 |
Supplies/Parts | 22,900 | 41,000 | 70,100 | 134,000 |
Other | 1,300 | 2,700 | 5,800 | 9,800 |
Contribution Margin | $230,400 | $240,200 | $96,100 | $566,700 |
Less Common Fixed Costs: | ||||
Rent | 58,800 | |||
Owner's Salary | 213,900 | |||
Utilities | 13,900 | |||
Other | 11,300 | |||
Profit | $268,800 |
Linda OFlaherty, the owner of ComputerGuard, believes that in the coming year, she can increase sales by 20 percent. Assuming the current mix of services, what will be the percentage increase in profit associated with a 20 percent increase in sales? (Round weighted-average contribution margin ratio to 6 decimal places, e.g. 0.124547 and final answer to 2 decimal places, e.g. 15.25%.)
Increase in profit ______ %
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