Hello! So i am trying to solve some of these questions, and this is one of the problems I am stuck on.
If someone could provide a step by step that would be great, thanks.
1.
Contribution margin = Sales – Variable cost
= 560,000 - 368,000
= $192,000
Contribution margin ratio = Contribution margin/Sales
= 192,000/560,000
= 34.2857%
Break even sales in dollars = Fixed cost/Contribution margin ratio
= 57,200/34.2857%
= $166,834
2.
Contribution margin income statement
Sales |
166,834 |
Variable cost |
- 109,634 |
Contribution margin |
57,200 |
Fixed cost |
- 57,200 |
Operating income |
$0 |
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Hello! So i am trying to solve some of these questions, and this is one of...
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