Question
McKnight Enterprises has the following operating profit: Sales $400,000 Variable Costs 160,000 Contribution Margin $240,000 Fixed Costs 140,000 Operating Profit $100,000 The company could increase
McKnight Enterprises has the following operating profit:
Sales $400,000
Variable Costs 160,000
Contribution Margin $240,000
Fixed Costs 140,000
Operating Profit $100,000
The company could increase revenues by 10% by reducing sales discounts by 10%. There will be no changes in variable or fixed costs. What would be the percentage increase in operating profits?
| Initial | With 10% Revenue Increase |
Net sales revenues | $400,000 | Enter Answer Here |
Variable Costs | $160,000 | Enter Answer Here |
Contribution Margin | $240,000 | Enter Answer Here |
Fixed Costs | $140,000 | Enter Answer Here |
Operating Profit | $100,000 | Enter Answer Here |
|
|
|
% Change in Operating Profit |
| Enter Answer Here |
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