Raymond & Sons generates an average contribution margin ratio of 45% on its sales
Management estimates that by spending $3,500 more per month to rent additional facilities, the business will be able to increase operating income by $10,000 per month. Management must feel that the additional facilities will increase monthly sales volume (in dollars) by:
A. $4,725.
B. $8,775.
C. $13,500.
D. $30,000.
D
Business
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