Imagine that Costco has $500,000 of sales (selling 31,250 units) in August and has a contribution margin

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Imagine that Costco has $500,000 of sales (selling 31,250 units) in August and has a contribution margin ratio of 37% and fixed costs of $70,000. If sales in units increase by 13% in September, what would be the new operating income?

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Cost Management A Strategic Emphasis

ISBN: 9781259917028

8th Edition

Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith

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Posted Date: Nov 28, 2023 06:51 AM

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Imagine that Costco has $500,000 of sales (selling 31,250 units) in August and has a contribution margin

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Expert Answer:

To calculate the new operating income we need to determine the new sales revenue and the new contribution margin Given August sales 500000 August units sold 31250 Contribution margin ratio 37 Fixed co... View the full answer

Cost Management A Strategic Emphasis

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