Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are expected to be P120,000, the same as last year, and revenues are forecasted at P550,000, a 10% increase over last year. for the company to increase operating income by P15,000 in the coming year, the contribution margin ratio must be: a. 20% b. 30% c. 40% d. 70%

Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are expected to be P120,000, the same as last year, and revenues are forecasted at P550,000, a 10% increase over last year. for the company to increase operating income by P15,000 in the coming year, the contribution margin ratio must be: a. 20% b. 30% c. 40% d. 70%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month...

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