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CVP problem 3) Maxwell Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 280,000 120,000 Variable expenses Contribution margin Fixed expenses

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3) Maxwell Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 280,000 120,000 Variable expenses Contribution margin Fixed expenses Net operating income 100,000 20,000 What is total contribution margin if sales volume increases by 20%? A) $80,000 B) $158,400 C) $200,000 D) $144,000 4) Tunde Corporation has a margin of safety percentage of 20% based on its actual sales. The break-even point is $500,000 and the variable expenses are 60% of sales. Given this information, the actual profit is: A) 565,000 B) 555,000 C) $50,000 D) $41,500 26

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