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Presented below are selected income statement data for Kettridge's Farm for the month of April: Sales $110,000 COGS $ 57,000 Operating Expenses $38,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 40%.

(a.) Use the income statement data to prepare a contribution margin.

(b.) If sales increase by 10 percent, what will be the firm's operating income?

(c.) Calculate the amount of revenue required for Kettridge's Farm to break even.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9989823

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