Presented is Ace Company's Contribution Income Statement:
Based on the contribution margin above, if ACE Company had $100,000 increase in sales, profit would increase by:

Name: Presented is Ace Company's Contribution Income Statement: Based on the contribution margin above, if ACE Company had $100,000 increase in sales, profit would increase by:
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Question

Presented is Ace Company's Contribution Income Statement:
 Based on the contribution margin above, if ACE Company had $100,000 increase in sales, profit would increase by:

Quizplus · Accepted Answer

(CM) $58,000 / (Sales) $200,000 = 0.29 CM Ratio
CM Ratio x Increase in sales = 0.29 x $100,000 = $29,000 increase in net income

Presented Is Ace Company's Contribution Income Statement