Deighan Company has the following income statement: $25,000 Sales revenue (1,250 units) Cost of goods sold-fixed...

  

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Deighan Company has the following income statement: $25,000 Sales revenue (1,250 units) Cost of goods sold-fixed Cost of goods sold-variable Operating expenses-fixed 3,000 17,000 1,000 Operating expenses-variable Net income 2.000 $2.000 How much is Deighan's contribution margin? (2 marks) b) What would be the contribution margin if selling price is increased by 10% and variable operating expenses increase by 5%? (2 marks) Deighan Company has the following income statement: $25,000 Sales revenue (1,250 units) Cost of goods sold-fixed Cost of goods sold-variable Operating expenses-fixed 3,000 17,000 1,000 Operating expenses-variable Net income 2.000 $2.000 How much is Deighan's contribution margin? (2 marks) b) What would be the contribution margin if selling price is increased by 10% and variable operating expenses increase by 5%? (2 marks)

Answer rating: 100% (QA)

a The contribution margin is calculated as the difference between total sales revenue and tota... View the full answer