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 firms revenues ...

In an article in the Wall Street Journal, you read that a firm reported a contribution margin

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In an article in the Wall Street Journal, you read that a firm reported a 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?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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Question Posted: Feb 20, 2013 09:26 AM

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In an article in the Wall Street Journal, you read that a firm reported a contribution margin

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

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