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The Downtown Branch of Emily's Bakery Is Organized as an Investment

Question 11

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The downtown branch of Emily's Bakery is organized as an investment center. The following information is available for the current year.
The downtown branch of Emily's Bakery is organized as an investment center. The following information is available for the current year.    Instructions:Compute the following measures for this investment center: a) Contribution margin:$____________ b) Contribution margin ratio (round your answer to 1 decimal place):____________% c) Responsibility margin:$____________ d) Return on assets:____________% e) Increase in responsibility margin that would be expected to result from a 10% increase in sales volume.$____________ Instructions:Compute the following measures for this investment center:
a) Contribution margin:$____________
b) Contribution margin ratio (round your answer to 1 decimal place):____________%
c) Responsibility margin:$____________
d) Return on assets:____________%
e) Increase in responsibility margin that would be expected to result from a 10% increase in sales volume.$____________

Correct Answer:

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a) $448,000 − $217,000 = $231,...

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