A responsibility center's contribution margin ratio is 40%, and its common fixed costs are currently $100,000. If the center's sales increase by $300,000 and its common fixed costs increase by $20,000, its responsibility margin will increase by $_? -Why is the answer $100,000?

A responsibility center's contribution margin ratio is 40%, and its common fixed costs are currently $100,000. If the center's sales increase by $300,000 and its common fixed costs increase by $20,000, its responsibility margin will increase by $_? -Why is the answer $100,000?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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