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In year 2020, E Corp has an operating leverage of 1.25, margin of safety of P 100,000 and Contribution margin ratio of 40%. If sales
In year 2020, E Corp has an operating leverage of 1.25, margin of safety of P 100,000 and Contribution margin ratio of 40%. If sales increased by 10% and fixed cost is P 10,000, what will be the net income in year 2021?
question 2
A company's current breakeven sales (BES) is 600,000. If fixed cost would increase by 20% of the current breakeven sales, such current BES would increase by 50%. What is the new Fixed cost from the new BES?
question 2
A company's current breakeven sales (BES) is 600,000. If fixed cost would increase by 20% of the current breakeven sales, such current BES would increase by 50%. What is the new Fixed cost from the new BES?
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Step: 1
Net Income in Year 2021 To calculate the net income in year 2021 we need to determine the new contribution margin and fixed costs after the 10 increas...
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
