Refer to Alford, Brooks, and Fitch Companies. Within the relevant range, if sales go up by $1 for each firm, which firm will experience the greatest increase in profit?

39.Refer to Alford, Brooks, and Fitch Companies. Within the relevant range, if sales go up by one unit for each firm, which firm will experience the greatest increase in net income?


40.Refer to Alford, Brooks, and Fitch Companies. At sales of $100, which firm has the highest margin of safety?

 

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Below are income statements that apply to three companies: Alford, Brooks, and Fitch: Alford Co. Brooks Co. Fitch Co. $100 $100 $100 Sales Variable costs Contribution margin Fixed costs Profit before taxes (10) $ 90 (30) $ 60 (20) $ 80 (20) $ 60 (30) $ 70 (10) $ 60 Below are income statements that apply to three companies: Alford, Brooks, and Fitch: Alford Co. Brooks Co. Fitch Co. $100 $100 $100 Sales Variable costs Contribution margin Fixed costs Profit before taxes (10) $ 90 (30) $ 60 (20) $ 80 (20) $ 60 (30) $ 70 (10) $ 60

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To answer the questions lets first calculate the profit for each firm if sales go up by 1 or one uni... View the full answer