The profit situation of ABC Company is not good. Currently the variable cost is 84% of...
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The profit situation of ABC Company is not good. Currently the variable cost is 84% of sales and the fixed costs are $40 000. A suggestion to improve the profit is to increase the contribution margin by 6% of sales and increase the fixed costs by $10 000. Will the break-even volume be better, and by how much? The break-even volume be better? choose your answer..... .by $type your answer... The profit situation of ABC Company is not good. Currently the variable cost is 84% of sales and the fixed costs are $40 000. A suggestion to improve the profit is to increase the contribution margin by 6% of sales and increase the fixed costs by $10 000. Will the break-even volume be better, and by how much? The break-even volume be better? choose your answer..... .by $type your answer...
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Answer rating: 100% (QA)
To analyze the impact of the suggested changes on the breakeven volume we need to calculate the brea... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
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