Experts on Call Provides Computer Repairs On-Site and Has a Contribution

question 59

Multiple Choice

Experts on Call provides computer repairs on-site and has a contribution margin ratio of 35%, a contribution margin per service call of $15, and fixed costs of $12,000 per month.During March, it made 1,200 service calls.How much will Experts on Call's profit increase if 200 more service calls are made?

• A)$1,000
• B)$350
• C)$1,050
• D)$3,000

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Definitions:

Corporation Income Statement

A financial statement that outlines the revenues, expenses, and profits or losses of a corporation over a specific period of time.

Cash Dividend Liability

An obligation for a corporation to pay shareholders a declared dividend in cash.

Date of Record

The specific date set by a corporation upon which the company determines the shareholders eligible to receive a dividend or distribution.

Income Tax Expense

The cost of income taxes a company must pay, reported in the income statement as part of its expenses.