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Consider the following income statements. Holmes, Inc. Richaun Corp. $600,000 Sales revenue $600.000 Variable costs 400,000 120,000 Contribution margin 200.000 480,000 Fixed costs 120.000 400,000
Consider the following income statements. Holmes, Inc. Richaun Corp. $600,000 Sales revenue $600.000 Variable costs 400,000 120,000 Contribution margin 200.000 480,000 Fixed costs 120.000 400,000 Net income $ 80,000 $ 80.000 Richaun Corp. has a higher than Holmes, Inc. O contribution margin ratio O degree of operating leverage O margin of safety ratio O break even point
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