Question
The uptown branch of Kenny's Deli is organized as an investment center. The following information is available for the current year: Sales......................................................................................................... $220,000 Variable expenses....................................................................................
The uptown branch of Kenny's Deli is organized as an investment center. The following information is available for the current year: Sales......................................................................................................... $220,000 Variable expenses.................................................................................... $100,000 Traceable fixed costs............................................................................... $56,000 Average total assets of the uptown branch ............................................. $95,000 11. The contribution margin at Kenny's uptown branch during the current year is: A. $9,000 B. $84,000 C. $120,000 D. $56,000 12. The contribution margin ratio is: A. 40% B. 50% C. 55% D. 25% 13. The responsibility margin for the uptown branch during the year is: A. $164,000 B. $44,000 C. $120,000 D. $64,000 14. If sales volume decreased by 10% and traceable fixed costs decreased by 20% what would be the new contribution margin? A. $75,600 B. $108,000 C. $79,200 D. $80,000 15. A 10% increase in the sales volume at the uptown store would be expected to increase the location's responsibility margin by: A. $30,000. B. $12,000. C. $20,000. D. Some other amount. $____________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started