Homework Answers
A. Felix's net income will be more than Jinx's.
working.
first let us know the contribution margin ratio
Felix company;
contribution / revenue =>172,200 /210,000
=>0.82.
Jinx company
129,066/210,000
=>0.6146.
since the current net income is equal for both the company's
An increase in sale by $1050 will increase their net income by (sale revenue * contribution margin ratio)
felix company = ($1050*0.82)=>$861.
JInx company = (1050*0.6146)=>$645.33.
It can be seen that increase to net income of felix is higher than that of jinx.
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