If Variable Costs Are 35% of Sales and Sales Increase

question 26

Multiple Choice

If variable costs are 35% of sales and sales increase by $50,000 this month because of a special promotion, by how much will contribution margin increase?

• A) $17,500.
• B) $25,500.
• C) $32,500.
• D)$50,000.

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Definitions:

Research Productivity

The rate at which a researcher or group of researchers produces scientific outputs, typically measured by publications in scholarly journals.

Salary Increases

Adjustments made to an employee's pay rate to reflect changes in market conditions, reward performance, or acknowledge inflation.

Professional Journals

Scholarly publications that feature articles and studies relevant to a particular professional field or discipline.

Job Satisfaction

The level of contentment employees feel about their work, which can influence their productivity and overall well-being.