Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mojo's Coffee Cart has a consistent contribution margin ratio of 55%. The company is purchasing new coffee roasters which will increase its fixed costs from

Mojo's Coffee Cart has a consistent contribution margin ratio of 55%. The company is purchasing new coffee roasters which will increase its fixed costs from $1,500 per month to $2,000 per month. Net income in August, before the purchase of the new roasters, was$3,000. What would monthly sales revenue need to be for the company to make the same net income in September after the purchase of the new roasters? Round to the nearest whole dollar.

Step by Step Solution

3.45 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

The companys fixed cost increased from 1500 to 2000 Net ... 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

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

More Books

Students also viewed these Accounting questions

Question

=+b) Are the conditions for two-way ANOVA met?

Answered: 1 week ago

Question

How does selection differ from recruitment ?

Answered: 1 week ago

Question

The entry to record cost of goods sold at the end of the month is a

Answered: 1 week ago

Question

What is the gross margin?

Answered: 1 week ago