Question: Required: i. Compute the companys Contribution Margin Ratio and Variable Expense Ratio ii. Assume that sales increase by Tk. 4,00,000 next year. If cost behavior
Required: i. Compute the companys Contribution Margin Ratio and Variable Expense Ratio ii. Assume that sales increase by Tk. 4,00,000 next year. If cost behavior patterns remain unchanged by how much wills the companys net operating income increase? (Use contribution margin ratio)
2. 10 ABC Company Limited produces and sells spare parts. The company's contribution format income statement for the most recent year is given below: Particulars Taka 12,00,000 9,00,000 Sales (2,000 units @ Tk. 600 per unit) Less, Variable Expenses @ Tk. 450 per unit Contribution Margin @ Tk. 150 Less, Fixed Expenses per unit 3,00,000 2,40,000 Net Operating Income 60,000
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