Contribution Margin Analysis Quiz
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Questions and Answers

What is the contribution margin ratio for Flight 137?

  • 0.70 (correct)
  • 0.30
  • 2.33
  • 1.42
  • If the flight is discontinued, what will be the total increase in contribution margin?

  • $162,000 (correct)
  • $653,000
  • $30,000
  • $683,000
  • What is the total variable cost for Flight 137?

  • $683,000
  • $653,000
  • $2,193,000
  • $1,540,000 (correct)
  • 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?

    <p>$164,080</p> Signup and view all the answers

    What is the operating income if the flight is discontinued?

    <p>$132,000</p> Signup and view all the answers

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