Contribution margin ratio = Contribution margin / sales revenue
Where contribution margin = Sales - variable cost
Option B. is correct answer.
Contribution margin ratio is computed by O A. dividing sales revenue by contribution margin. OB. dividing...
unsure with these two. thank you! Contribution margin ratio is computed by O A. dividing sales revenue by contribution margin. O B. dividing contribution margin by sales revenue. O c. dividing contribution margin by operating income. OD. dividing operating income by contribution margin. With respect to total fixed costs, which of the following statements is true? O A. They will remain the same as production levels change within the relevant range. OB. They will increase as production decreases within the...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 66,000 $22,000 Contribution margin Total Fixed cost 10,500 Operating income $11,500 Required: 1. Calculate the contribution margin ratio. 2. Calculate the variable cost ratio. 3. Calculate the break-even sales revenue for Ashton. 4. How could Ashton increase projected operating income without increasing the total sales revenue
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 61,600 Contribution margin $26,400 Total Fixed cost 12,300 Operating income $14,100 Required: 1. Calculate the contribution margin ratio. % 2. Calculate the variable cost ratio. % 3. Calculate the break-even sales revenue for Ashton. $
Calculator Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Paragon Company's controller prepared the following budgeted income statement for the coming year: Sales $490,000 Total variable cost 302,950 Contribution margin $187,050 64,800 Total fixed cost Operating income 122,250 Required: If required, round ratios to the nearest whole percent. Use rounded amounts in subsequent requirements. Round dollar amounts to the nearest dollar. 1. What is Paragon's variable cost ratio? What is its contribution margin ratio? Variable cost ratio Contribution margin...
Brockton has a contribution margin ratio of 20%. If the company's sales revenue is $1,000 greater than their break-even point in sales dollars, their net income: Brockton has a contribution margin ratio of 20%. If the company's sales revenue is $1,000 greater than their break-even point in sales dollars, their net income: will be $1,000 another paradox! will be $200 will be $800
Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 Net income $64,920 Required: 1. What is Hammond’s variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution...
If we have a contribution margin ratio of 40% and this month, sales revenue was $150,000, and net income was $10,000. How much are our fixed costs?
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 100,000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $660,000. Total fixed costs equal $7,200,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. $ What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a...
If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are Select one: O A. $157,500 O B. $35,000 O C. $15,000 O D. $210,000
Multiple Choice Question 43 The contribution margin ratio is O sales divided by fixed expenses. contribution margin divided by sales. O sales divided by variable expenses. sales divided by contribution margin.