Question: QUESTION 3 If a company's contribution margin ratio is 20%, total expenses are 80% of sales. with a 20% increase in sales, net income will

QUESTION 3

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

    total expenses are 80% of sales.

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

    net income is 20% of sales.

    variable expenses are 80% of sales.

    contribution margin is 80% of sales.

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!

Q:

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...

Q:

Please answer all: 1. Presented below is the income statement for Anderson Inc. for the month of May: Sales $1,280,000 Cost of goods sold 1,180,000 Gross profit $100,000 Operating expenses 64,000...

Q:

1. 2. Presidio, Inc., produces one model of mountain bike, Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin...

Q:

1. Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,600 units, and monthly production...

Q:

Please Answer all 4 parts of the queastion do not answer the queastions and say Chegg gudile lines I will Thumps down no questions asked. Thanks, A) B) C) D) Presidio, Inc., produces one model of...

Q:

1-3, and the parts to solve the problems are in the light blue part. Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's...

Q:

please please answer asap esidio, inc. produces one model of mountain bike. Partial information for the company follows: equired: Complete Presidio's cost data table Calculate Presidio's contribution...

Q:

1. Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,600 units, and monthly production...

Q:

PLEASE INCLUDE FORMULAS THANK YOU Presidio, Inc.. produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate...

Q:

Lily company has an operating leverage factor of 4 at this time. And it's contribution margin ratio is 30%. Currently Sales are $100,000. If sales units increase by 20% (by $20,000) next period (unit...

Q:

LWF Corp. was a medium sized manufacturer of fixtures for home and industrial use. Established in 1994, the firm designed, manufactured, and distributed its products throughout Canada. Until 2006,...

Q:

You have a balance of $926 on your credit card account. The minimum payment on your account is 2 percent of the most recent balance or $20, whichever is greater. What will be the minimum payment this...

Q:

Considering the distinct profiles of both the underwriters: As Morgan Nelson & Co . , which valuation multiple would you emphasize to potential investors and why? ( 7 . 5 points )

Q:

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Q:

What is occurring in this case and identify the parties affected by events reported in the case.

Q:

What are the key HR considerations for operating in such an industry?

Q:

Begin by a specific definition of the fast-food industry in a geography of your choice.Explain the rationale of your choice.