Question: If the contribution margin rao increases by 113% and all else remains the same. what is the effect on net income? '3 a. net income

If the contribution margin rao increases by 113% and all else remains the same. what is the effect on net income? '3 a. net income will increase E73 b. net income will increase by 20% D c. more information is need to answer this question '3 d. net income will increase by 10% Clear my choice

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? Select one: more information is need to answer this question net income will...

8 If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? Select one: more information is need to answer this question net income will...

If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? a. Net income will increase b. Net income will increase by 20% c, More information...

Operating leverage; margin of safety; income statement Titan Foods makes a high-energy frozen meal. The selling price per package is $7.20, and variable cost of production is $4.32. Total fixed cost...

The contribution format income statement for Huerra Company for last year is given below: Total Unit $ 49.60 Sales Variable expenses 992,000 595,200 29.76 396,800 320,800 76,000 30,400 45,600...

As a company's fixed costs increase: Select one: a. The contribution margin remains unchanged but net income will decrease. ob. The contribution margin and net income both remain unchanged. O c. The...

q1 q2 q3 q4 Bramble Corp, produces three versions of baseball bats: wood aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hand Rubber Total...

1.)The contribution margin ratio increases when Answer A. variable costs as a percentage of sales decrease. B. fixed costs increase. C. variable costs as a percentage of sales increase. D. fixed...

a) Show that if A is a fixed event of positive probability, then the function Q [B]=P[B|A] taking events B into IR satisfies the three defining axioms of probability. b) 16. A credit card company...

Direct finance includes the sale by a corporation of stocks or bonds, but does not include borrowing money from a bank, explain.

X ^ 2 + 7 x + 1 0 find two points

Fortune provides a list of America's largest corporations based on annual revenue. Shown below are the 50 largest corporations, with annual revenue expressed in billions of dollars (CNN Money...

Mary Rhodes (Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9 compare plans C and D with plans A and B and make a recommendation. Plan C: Keep the current...

Dr. Sherry Bird is employed by Dental Associates. Dental Associates recently installed a computerized job-order costing system to help monitor the cost of its services. Each patient is treated as a...

Suppose you sell a fixed asset for $109,000 when its book value is $129,000. If your companys marginal tax rate is 39 percent, what will be the effect on cash flows of this sale (i.e., what will be...

Mary Rhodes, operations manager at Kansas Furniture, has received the following estimates of demand requirements: Assuming stock out costs for lost sales of $100 per unit, inventory carrying costs of...

For a new product in our company we need to use with the following plants in order to maximize the output: Petrochemical plant, Steel plant, and Electric plant. The current objective is 1 0 00 . The...

2. In this chapter, the reader should reflect on the following concepts:

1. To gain knowledge about the way information is stored in memory.

5. Which metaphors do you mainly use when talking about organizations and companies? What do these metaphors express about an organization or a company? Are there other metaphors that may be more...