A company provided the following results from It's operations: Total Sales $400,000 Variable expenses 280.000 Contribution margin 120,000 Fixed expenses 100,000 Net operating income $20,000 What is total contribution margin if sales volume increases by 20%? O $158,400. O $200,000. O $80,000. O $144,000.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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A company provided the following results from It's operations:
Total
Sales
$400,000
Variable expenses
280.000
Contribution margin
120,000
Fixed expenses
100,000
Net operating income
$20,000
What is total contribution margin if sales volume increases by 20%?
O $158,400.
O $200,000.
O $80,000.
O $144,000.
Transcribed Image Text:A company provided the following results from It's operations: Total Sales $400,000 Variable expenses 280.000 Contribution margin 120,000 Fixed expenses 100,000 Net operating income $20,000 What is total contribution margin if sales volume increases by 20%? O $158,400. O $200,000. O $80,000. O $144,000.
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