Once you have viewed the video, please complete and submit the the table below for the Seminar Assignment
Please view the video available at https://www.youtube.com/watch?v=Jtokk7wcwiQ
Once you have viewed the video, please complete and submit the the table below for the Seminar Assignment.
McKnight Enterprises has the following operating profit:
Sales $400,000
Variable Costs 160,000
Contribution Margin $240,000
Fixed Costs 140,000
Operating Profit $100,000
The company could increase revenues by 10% by reducing sales discounts by 10%. There will be no changes in variable or fixed costs. What would be the percentage increase in operating profits?
|
|
Initial |
With 10% Revenue Increase |
|
Net sales revenues |
$400,000 |
Enter Answer Here |
|
Variable Costs |
$160,000 |
Enter Answer Here |
|
Contribution Margin |
$240,000 |
Enter Answer Here |
|
Fixed Costs |
$140,000 |
Enter Answer Here |
|
Operating Profit |
$100,000 |
Enter Answer Here |
|
|
|
|
|
% Change in Operating Profit |
|
Enter Answer Here |
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