Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if sales in store q increase by $30,000 as a resul

If sales in Store Q increase by $30,000 as a result of a $7,000 increase...

90.2K

Verified Solution

Question

Accounting

image

If sales in Store Q increase by $30,000 as a result of a $7,000 increase in traceable fixed costs:

A)

Store Q's contribution margin should increase by $18,000.

B)

Store Q's segment margin should increase by $12,000.

C)

Store Q's contribution margin should increase by $11,000.

D)

Store Q's segment margin should increase by $5,000.

Answer: D

why is D show the process.

Ring, Incorporated's income statement for the most recent month is given below Total $600,000 384,000 216,000 Store P 200,000$400,00o 144,000 56,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 240,000 160,000 42,000 152,0005,000 110,000 64.000$14,000 34,000 $ 30,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Call Option You have taken a long position in a call option on UBR common stock. The...

Biology
1.2K views

Behavioral changes in animals are strongly correlated to: A. the process of natural selection B. increasing interaction...

Psychology
1.2K views

Society has a way of making people and families feel that there is a certain way...

Accounting
1.2K views

Internet Marketing Inc. (IMI), which has been operating for three years, provides marketing...

Accounting
1.2K views

What is the posting reference (PR) used to indicate an amount...

Accounting
1.2K views

If fixed costs are $268,000, the unit selling price is $117, and the unit variable...

Accounting
1.2K views

Sun Corporation recelved a charter that authorized the issuance of 91,000 shares of $7 par...

Accounting
1.2K views

On a bank reconciliation, which of the following would be subtracted from the general ledger...

Accounting
1.2K views

Miller Toy Company fabrica una piscina de plstico en su planta de Westwood. La planta...

Accounting
1.2K views

Beckett Company sold merchandise on account for $12,100, terms 1/10, n/30. Freight charges of $400...

Finance
1.2K views

Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs...

Finance
1.2K views

Lexi is a college student. In 2022 , she earns $3,000 in wages from her...