The uptown branch of Kenny's Deli is organized as an investment center. The following information is available for the current year:
If you select answer d for question 5, indicate the correct amount in the space provided.
-Refer to the above data. A 10% increase in the sales volume at the uptown store would be expected to increase the location's responsibility margin by:
A) $30,000.
B) $12,000.
C) $20,000.
D) Some other amount. $____________

Question

The uptown branch of Kenny's Deli is organized as an investment center. The following information is available for the current year:
  If you select answer d for question 5, indicate the correct amount in the space provided.
-Refer to the above data. A 10% increase in the sales volume at the uptown store would be expected to increase the location's responsibility margin by:
A) $30,000. 
B) $12,000. 
C) $20,000. 
D) Some other amount. $____________

Quizplus · Accepted Answer

($220,000 - $100,000) × 10% = $12,000

The Uptown Branch of Kenny's Deli Is Organized as an Investment