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.

---

Definitions:

Landscape

An area of land that is considered in terms of its physical features, including its topography, vegetation, and manmade structures.

Hill Side

Hill sides, or slopes, refer to the inclined surfaces of hills, which can vary in steepness and are often subject to processes like erosion and land slides.

Indonesian Earthquake

A seismic event occurring in Indonesia, a region highly susceptible to earthquakes due to its position on the Pacific "Ring of Fire."

Subduction

The method in which a tectonic plate slides beneath another one and descends into the mantle during the convergence of the plates.