Consider the following company: Yr. 1 Revenue 600 Variable Costs 350 Fixed Costs 100 Operating Margin 25%

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Consider the following company:

Yr. 1

Revenue 600

Variable Costs 350

Fixed Costs 100

Operating Margin 25%

Assuming revenue increases 10% all due to volume, what will operating margin be in year 2?

Related Book For answer-question

Financial Management for Public Health and Not for Profit Organizations

ISBN: 978-0132805667

4th edition

Authors: Steven A. Finkler, Thad Calabrese

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Posted Date: May 02, 2023 06:41 AM

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Consider the following company: Yr. 1 Revenue 600 Variable Costs 350 Fixed Costs 100 Operating Margin 25%

Question:

Expert Answer:

To calculate the operating margin for year 2 we first need to determine the expected revenue and co... View the full answer

Financial Management for Public Health and Not for Profit Organizations

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