a. Young Company budgets sales of $790,000,
fixed costs of $33,800, and variable costs of $150,100. What is the
contribution margin ratio for Young Company? (Enter your answer as
a whole number.)
%
b. If the contribution margin ratio for
Martinez Company is 56%, sales were $844,000, and fixed costs were
$354,480, what is the income from operations?
$
Answers:-
a)contribution margin = (sales -variable cost)/sales
=($790000-150100)/790000 =0.81 or 81%
b)Income from operations
=contributions*sales - fixed cost
=56%*844000 -354480 =$118160
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