Austin,Brown,and Freeman Companies Below are income statements that apply to three companies: Austin,Brown,and Freeman:

Austin Co. Brown Co. Freeman Co.

Sales $100 $100 $100

Variable costs (10) (20) (30)

Contribution margin $ 90 $ 80 $ 70

Fixed costs (30) (20) (10)

Profit before taxes $ 60 $ 60 $ 60

Refer to Austin,Brown,and Freeman Companies.Within the relevant range,if sales go up by one unit for each firm,which firm will experience the greatest increase in net income?

Question

Austin,Brown,and Freeman Companies Below are income statements that apply to three companies: Austin,Brown,and Freeman:

	Austin Co.	Brown Co.	Freeman Co.
Sales	$100	$100	$100
Variable costs	(10)	(20)	(30)
Contribution margin	$ 90	$ 80	$ 70
Fixed costs	(30)	(20)	(10)
Profit before taxes	$ 60	$ 60	$ 60

Refer to Austin,Brown,and Freeman Companies.Within the relevant range,if sales go up by one unit for each firm,which firm will experience the greatest increase in net income?

Quizplus · Accepted Answer

The Answer of Austin,Brown,and Freeman Companies Below are income statements that apply to three companies: Austin,Brown,and Freeman:

	Austin Co.	Brown Co.	Freeman Co.
Sales	$100	$100	$100
Variable costs	(10)	(20)	(30)
Contribution margin	$ 90	$ 80	$ 70
Fixed costs	(30)	(20)	(10)
Profit before taxes	$ 60	$ 60	$ 60

Refer to Austin,Brown,and Freeman Companies.Within the relevant range,if sales go up by one unit for each firm,which firm will experience the greatest increase in net income?

Austin,Brown,and Freeman Companies Below Are Income Statements That Apply to Three Companies: Austin,Brown,and