Mounce's Market operates with a 20% contribution margin.If Mounce's sales decrease by $10,000, operating income will decrease by
A)$200.
B)$250.
C)$2,000.
D)$2,500.

Name: Mounce's Market operates with a 20% contribution margin.If Mounce's sales decrease by $10,000, operating income will decrease by A)$200. B)$250. C)$2,000. D)$2,500.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With a 20% contribution margin, a $10,000 decrease in sales results in a $2,000 (20% of $10,000) decrease in operating income.

Mounce's Market Operates with a 20% Contribution Margin