The variable cost ratio is 40 what is the expected profit


Collins Co. earned a profit of $2,000 in January. The company has estimated that sales will increase by $13,500 in February. Assume that fixed costs for January were $3,000 (and are not expected to change) and the variable cost ratio is 40%. What is the expected profit for the next month?

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Accounting Basics: The variable cost ratio is 40 what is the expected profit
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