Question
The management of Ty Inc. believes that by increasing salesmens salaries by $20,000, sales will increase by 500 units. The sales price per unit is
The management of Ty Inc. believes that by increasing salesmens salaries by $20,000, sales will increase by 500 units. The sales price per unit is $80 and the contribution margin is $25. Should Ty increase the salemens salaries?
No, because the change in contribution is $7,500 less than the increase in salaries.
No, because the change in contribution margin is $25,000 less than the increase in salaries.
Yes, because the change in contribution margin is $20,000 more than the increase in salaries.
Yes, because the change in contribution margin is $5,000 more than the increase in salaries.
Yes, because the change in contribution margin is $7,5000 more than the increase in salaries.
No, because the change in contribution is $5,000 less than the increase in salaries.
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
8th Edition
1260881245, 9781260881240
