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Review the following information. If both companies experienced a 20% growth in sales, which one would experience a higher increase in their net profit?
Review the following information. If both companies experienced a 20% growth in sales, which one would experience a higher increase in their net profit? ABC Company XYZ Company Sales $50,000 $50,000 Variable Expenses $25,000 $10,000 Contribution Margin $25,000 $40,000 Fixed Expenses $10,000 $25,000 Net Profit (loss) $15,000 $15,000 ABC would show a higher increase in net profit. They would both show the same increase in net profit. XYZ would show a higher increase in net profit
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