Question: If a company's contribution margin ratio is 20%, variable expenses are 80% of sales. with a 20% increase in sales, net income will go up

If a company's contribution margin ratio is 20%,

variable expenses are 80% of sales.

with a 20% increase in sales, net income will go up by 20%.

total expenses are 80% of sales.

contribution margin is 80% of sales.

net income is 20% of sales.

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