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What would be the impact on the contribution margin

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Reference no: EM132598580

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Q1. In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated?

Q2. If fixed costs increase, what would be the impact on the (a) contribution margin? (b) income from operations?

Q3. An examination of the accounting records of Clowney Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving income from operations. Explain.

Reference no: EM132598580

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