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Saved Requirea information Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P
14 Required information Product T rt 1 of 3 Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: Contribution Ma
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Answer #1
Product T
Contribution Margin Ratio
Choose Numerator: / Choose Denominator: = Contribution Margin Ratio
Contribution margin / Sales = Contribution Margin Ratio
                    1,68,480 /                          8,42,400 = 20.00 %
Break-even Point in dollars
Choose Numerator: / Choose Denominator: = Break-Even point in Dollars
Fixed Expenses / Contribution Margin ratio = Break-Even point in Dollars
                       26,480 / 20.00% =         132,400
Product O
Contribution Margin Ratio
Choose Numerator: / Choose Denominator: = Contribution Margin Ratio
Contribution margin / Sales = Contribution Margin Ratio
                    673,920 /                          842,400 = 80.00 %
Break-even Point in dollars
Choose Numerator: / Choose Denominator: = Break-Even point in Dollars
Fixed Expenses / Contribution Margin ratio = Break-Even point in Dollars
                    531,920 / 80.00% =         664,900
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