Markham Company has a contribution margin ratio of 25%.The company is considering a proposal that will increase sales by $150,000.What increase in profit can be expected assuming total fixed costs increase by $25,000? (Do not round intermediate calculations.)
A) $6,250
B) $31,250
C) $37,500
D) $12,500

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The Answer of Markham Company has a contribution margin ratio of 25%.The company is considering a proposal that will increase sales by $150,000.What increase in profit can be expected assuming total fixed costs increase by $25,000? (Do not round intermediate calculations.)
A) $6,250
B) $31,250
C) $37,500
D) $12,500

Markham Company Has a Contribution Margin Ratio of 25