Determining the increase in profit, Accounting Basics

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Determining the increase in profit

Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000?

A. $25,000

B. $15,000

C. $5,000

D. $20,000

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Accounting Basics: Determining the increase in profit

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Accounting Basics: Determining the increase in profit

Reference No:- TGS066515

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Explain the long-run adjustments that create equilibrium

Q : Assumptions underlying cost-volume-profit analysis

Q : Compute the rate per hour of labor

Q : How economy adjust in long run to restore full-employment

Q : Determining the increase in profit

Q : Demand diagram of the us treasury bond

Q : What will be the effect on net income

Q : Order in which most master budgets are prepared

Q : Distinguish monetary policy instruments and monetary tools

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Determining the increase in profit

Reference No:- TGS066515

Recent Questions Asked Accounting Basics

Q : Explain the long-run adjustments that create equilibrium

Q : Assumptions underlying cost-volume-profit analysis

Q : Compute the rate per hour of labor

Q : How economy adjust in long run to restore full-employment

Q : Determining the increase in profit

Q : Demand diagram of the us treasury bond

Q : What will be the effect on net income

Q : Order in which most master budgets are prepared

Q : Distinguish monetary policy instruments and monetary tools

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