Question: How do you solve this question step - by step with written out explanation. The answer is 100,000 A responsibility center's contribution margin ratio is

How do you solve this question step - by step with written out explanation. The answer is 100,000

A responsibility center's contribution margin ratio is 40%, and its common fixed costs are currently $100,000. If the center's sales increase by $300,000 and its common fixed costs increase by $20,000, its responsibility margin will increase by $ ??

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