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Collins Co

Question 148

Multiple Choice

Collins Co. earned a profit of $2,000 in January. The company has estimated that sales will increase by $13,500 in February. Assume that fixed costs for January were $3,000 (and are not expected to change) and the variable cost ratio is 40%. What is the expected profit for the next month?


A) $8,100
B) $10,100
C) $13,500
D) Not enough information available

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