Question: In an article in the Wall Street Journal, you read that a firm reported a contribution margin equal to 40% of revenues and profit before

In an article in the Wall Street Journal, you read that a firm reported a contribution margin equal to 40% of revenues and profit before taxes equal to 15% of revenues. If fixed costs were $200,000, what were the firm’s revenues?

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Revenue 800000 100 Variable Costs 480000 60 Contribution Margin 320000 40 FIxed Costs 200000 25 Prof... View full answer

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