McKnight Enterprises has the following operating profit: Sales $400,000 Variable Costs 160,000 Contribution...
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Accounting
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
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Variable Costs
$160,000
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Contribution Margin
$240,000
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Fixed Costs
$140,000
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Operating Profit
$100,000
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% Change in Operating Profit
Enter Answer Here
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