Question
How much would operating income increase if same-stores sales increased by $500 million for the coming year, with no change in the contribution margin ratio
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How much would operating income increase if same-stores sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs?
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Increase in Income from Operation = Increase in sales x Contribution Margin Ratio
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= $811 Million x 36.2%
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= $294 Million
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What would have been the operating income or loss for the recent year if sales had been $500 million more?
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New Challenges For Future Sustainability And Wellbeing
Authors: Ercan Özen, Simon Grima, Rebecca Dalli Gonzi
1st Edition
1800439695, 9781800439696
