A company has sales of $6,000, a contribution margin of 25%, fixed costs of $1,250, and net
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A company has sales of $6,000, a contribution margin of 25%, fixed costs of $1,250, and net income of $250. If $500 (of the $1,250 in fixed costs) are salary expenses and a new law will increase salary expenses by 30%, how much would sales have to be to maintain net income at $250 (the contribution margin will remain at 25%? )?
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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