Frontier Corp

question 118

Multiple Choice

Frontier Corp.has a contribution margin of $450,000 and profit of $150,000.If sales increase 20%,by how much will profits increase?

• A)20%
• B)30%
• C)60%
• D)90%

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Definitions:

Restatement

The revision and republication of one or more of a company's previous financial statements to correct an error.

Depreciation

Allocating the cost of a physical asset across its life of utility in a systematic manner.

Acquires Land

The process by which a company or individual procures land as an asset.

Land

The surface of the earth, including the soil and anything attached to it naturally, used as a fixed asset in accounting, with no depreciation over time.