Question

Contribution Margin Ratio

**a.** Young Company budgets sales of $760,000,
fixed costs of $22,200, and variable costs of $98,800. What is the
contribution margin ratio for Young Company?

fill in the blank 1 %

**b.** If the contribution margin ratio for
Martinez Company is 67%, sales were $511,000, and fixed costs were
$246,510, what was the operating income?

$fill in the blank 2

Answer #1

a) Contribution Margin Ratio=87%

b) Operating income=$95860

Contribution Margin Ratio a. Young Company budgets sales of
$720,000, fixed costs of $51,800, and variable costs of $230,400.
What is the contribution margin ratio for Young Company? %
b. If the contribution margin ratio for Martinez Company is 45%,
sales were $491,000, and fixed costs were $165,710, what was the
operating income?

Contribution Margin Ratio a. Yountz Company budgets sales of
$760,000, fixed costs of $47,900, and variable costs of $212,800.
What is the contribution margin ratio for Yountz Company? (Enter
your answer as a whole number.) % b. If the contribution margin
ratio for Vera Company is 65%, sales were $678,000, and fixed costs
were $326,120, what was the income from operations?

Contribution Margin Ratio
a. Yountz Company budgets sales of $730,000,
fixed costs of $49,300, and variable costs of $219,000. What is the
contribution margin ratio for Yountz Company? (Enter your answer as
a whole number.)
%
b. If the contribution margin ratio for Vera
Company is 41%, sales were $781,000, and fixed costs were $233,750,
what was the income from operations?
$

4. Contribution Margin Ratio
a. Yountz Company budgets sales of $950,000,
fixed costs of $21,400, and variable costs of $95,000. What is the
contribution margin ratio for Yountz Company? (Enter your answer as
a whole number.)
%____
b. If the contribution margin ratio for Vera
Company is 48%, sales were $833,000, and fixed costs were $291,880,
what was the income from operations?
$___

1. Yountz Company budgets sales of $1,190,000, fixed costs of
$50,900, and variable costs of $226,100. What is the contribution
margin ratio for Yountz Company? (Enter your answer as a whole
number.)
2. If the contribution margin ratio for Vera Company is 53%,
sales were $738,000, and fixed costs were $285,530, what was the
income from operations?

a. Yountz Company budgets sales of $1,240,000,
fixed costs of $39,100, and variable costs of $173,600. What is the
contribution margin ratio for Yountz Company? (Enter your answer as
a whole number.)
%
b. If the contribution margin ratio for Vera
Company is 53%, sales were $516,000, and fixed costs were $213,310,
what was the income from operations?
$

Ripa Company has the following data:
Sales revenue
$360,000
Variable costs
$240,000
Contribution margin
$120,000
Fixed costs
$100,000
Operating income
$ 20,000
What will the contribution margin ratio be at Ripa Company if sales
volume increases by 15%?

Cornerstone Exercise 16.1 (Algorithmic)
Variable Costs, Contribution Margin, Contribution Margin Ratio
Super-Tees Company plans to sell 15,000 T-shirts at $16 each in
the coming year. Product costs include:
Direct materials per T-shirt
$5.60
Direct labor per T-shirt
$1.12
Variable overhead per T-shirt
$0.48
Total fixed factory overhead
$43,000
Variable selling expense is the redemption of a coupon, which
averages $0.80 per T-shirt; fixed selling and administrative
expenses total $19,000.
Required:
1. Calculate the following values:
Round dollar amounts to 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
64,240
Contribution
margin
$23,760
Total Fixed cost
9,180
Operating income
$14,580
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 and Contribution Margin Ratio
For a recent year, McDonald’s (MCD)
company-owned restaurants had the following sales and expenses (in
millions):
Sales
$15,295.0
Food and packaging
$(4,896.9)
Payroll
(4,134.2)
Occupancy (rent, depreciation, etc.)
(3,667.7)
General, selling, and administrative expenses
(2,384.5)
$(15,083.3)
Operating income
$211.7
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
c. How much would operating income increase if
same-store sales increased by $800 million for...

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