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Last Year,Brown Manufacturing Had a Contribution Margin Ratio of 40

Question 106

Multiple Choice

Last year,Brown Manufacturing had a contribution margin ratio of 40%.This year,fixed expenses are expected to remain at $50 000 and sales are expected to increase by $90 000.What should the contribution margin ratio be this year if the company wishes to increase net income by $31 500?


A) 78.75%
B) 40.00%
C) 35.00%
D) 55.56%

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