5 Questions
What is the contribution margin ratio for Flight 137?
0.70
If the flight is discontinued, what will be the total increase in contribution margin?
$162,000
What is the total variable cost for Flight 137?
$1,540,000
If 76% of the segment's fixed costs will remain with the company if the flight is discontinued, what will be the remaining amount of fixed costs no longer incurred?
$164,080
What is the operating income if the flight is discontinued?
$132,000
Test your knowledge of contribution margin analysis with this quiz based on a scenario involving Atl Coast Airlines. Analyze the contribution margin statement for a specific flight and make strategic decisions to improve the company's financial performance.
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