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    kcaver's Avatar
    kcaver Posts: 1, Reputation: 1
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    #1

    Dec 18, 2013, 01:47 PM
    Accounting help
    A firm's products have an average contribution margin ratio of 40%, which will be maintained for the next month even though fixed expenses are expected to rise by $20,000. In order to keep operating income for the month from being affected, revenues will have to increase by:
    $8,000

    $12,000.

    $20,000.

    $50,000.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
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    #2

    Dec 18, 2013, 02:52 PM
    Hint: revenue times contribution margin % = income generated to offset fixed expenses.

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