Company A sales Sales 100% 70% Variable costs 33,000 Contibution Margin P 44,000 Fixed Costs Net Income Company B Amount % of sales P110,000 100% 30% 66.000 30.000 P 14,000 60% 40% Amount P110,000 P 77,000 60,000 P 17,000 Assume Sales rise 10% in the next year,what will be the change in Company A's Income?(You answer should be in percentage) % of

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Company A
sales
Sales
100%
Variable costs
33,000
Fixed Costs
Net Income
Company B
Amount % of sales
P110,000
30%
Contibution Margin P 44,000
70%
66.000
30.000
P 14,000
100%
60%
40%
4
Amount
P110,000
P 77,000
60,000
P 17,000
Assume Sales rise 10% in the next year,what will be the change in
Company A's Income?(You answer should be in percentage)
% of
Transcribed Image Text:Company A sales Sales 100% Variable costs 33,000 Fixed Costs Net Income Company B Amount % of sales P110,000 30% Contibution Margin P 44,000 70% 66.000 30.000 P 14,000 100% 60% 40% 4 Amount P110,000 P 77,000 60,000 P 17,000 Assume Sales rise 10% in the next year,what will be the change in Company A's Income?(You answer should be in percentage) % of
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