A firm has revenues of $150,000, a contribution margin ratio of 35%, and fixed expenses that total $60,000. If revenues increase by $30,000, then: Multiple Choice fixed expenses will increase by $12,000. the contribution margin ratio will increase by 20%. operating income will increase by $10,500. operating income will be 0.

A firm has revenues of $150,000, a contribution margin ratio of 35%, and fixed expenses that total $60,000. If revenues increase by $30,000, then: Multiple Choice fixed expenses will increase by $12,000. the contribution margin ratio will increase by 20%. operating income will increase by $10,500. operating income will be 0.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6DQ

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