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Imagine that Costco has $500,000 of sales (selling 31,250 units) in August and has a contribution margin ratio of 37% and fixed costs of $70,000.
Imagine that Costco has $500,000 of sales (selling 31,250 units) in August and has a contribution margin ratio of 37% and fixed costs of $70,000. If sales in units increase by 13% in September, what would be the new operating income?
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To calculate the new operating income we need to determine the new sales revenue and the new contribution margin Given August sales 500000 August units sold 31250 Contribution margin ratio 37 Fixed co...
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
8th Edition
1259917029, 978-1259917028
