Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Quality Auditing

Authors: B. Scott Parsowith

1st Edition

0873892402, 978-0873892407

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago