Calculate contribution margin ratio and required sales in dollars to breakeven
Eastland Corp had total variable costs of $167,706,total fixed costs of $118,500 and total revenues of $254,100
Calculate contribution margin ratio
Compute the required sales in dollars to breakeven (round answer to 0 decimal places)
Homework Answers
Calculation of Contribution margin ratio = Contribution margin / Sales
= 86,394 / 2,54,100
= 34%
Contributin margin = total revenue - total variable cost
= 2,54,100 - 1,67,706
= 86,394
Breakeven sales = Fixed Cost / Contribution margin %
= 1,18,500 / 34%
= $3,48,529
Required sales = Breakeven point sales - Total revenue
= $3,48,529 - 2,54,100
= $94,429
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Calculate contribution margin ratio and required sales in dollars to breakeven
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places for your calculation.
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rounded answer from above for calculation.
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(a) Determine the annual break-even point
in sales dollars. Round contribution margin ratio to two decimal
places for your calculation.
(b) Determine the annual margin of safety in sales dollars. Use
rounded answer from above for calculation.
(c) What is the break-even point in sales dollars if management
makes a decision that increases fixed costs by $57,000?
Use rounded contribution margin ratio (2 decimal places) for
your calculation.
(d) With the current cost structure, including fixed costs of
$285,000, what...
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Please solve the contribution margin ratio.
Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax earnings $2,000,000 1,050,000 950,000 785,000 $165,000 Your answer is correct. Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to o decimal places,...
Accounting Help. Thanks!
Please help me find margin of safety ratio and total increase in
sales required. I have already found most of the answers. Thank
you
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