Foster's Repair Shop has a monthly target operating income of P30,000. Variable expenses are 40% of sales,

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Foster's Repair Shop has a monthly target operating income of P30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $7,500. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%?

Posted Date: May 10, 2024 05:03 AM

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Foster's Repair Shop has a monthly target operating income of P30,000. Variable expenses are 40% of sales,

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Heres how to calculate the percentage decrease in operating income if sales volume declines by 12 1 Calculate the Contribution Margin Ratio Contributi... View the full answer

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