Contribution margin per service call


Byters on Call provides computer repairs on-site and has a contribution margin ratio of 32%, a contribution margin per service call of $5, and fixed costs of $21,160 per month. During March, it made 5,000 service calls. How much will Byters on Call's profit increase if 160 more service calls are made?

a) $1,354

b) $800

c) $6,771

d) $4,232

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Accounting Basics: Contribution margin per service call
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