Question

Nagam owns three shops: A, B, and C. During November, shop A had a contribution margin...

Nagam owns three shops: A, B, and C. During November, shop A had a contribution margin of $25,000 and a contribution margin ratio of 30%. Shop B had variable expenses of $40,000 and a contribution margin ratio of 350%. Shop C had variable expenses of $80,000 and a variable expense ratio of 60% of sales. Calculate the total sales in dollar value.

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Answer #1
Sales Revenue of Shop A = (Contribution margin/Contribution %)
Sales Revenue of Shop A = (25000/30%)
Sales Revenue of Shop A = $ 83,333.33/.
Contribution margin ratio = 350%
Sales Ratio = 1000%, Variable expenses is = 650%
Sales Revenue of Shop B is = (40000*(1000%/650%))
Sales Revenue of Shop B is = $ 61,538.46/.
Shop C sales revenue is = (Variable expenses/Variable expense ratio)
Shop C sales revenue is = (80000/60%)
Shop C sales revenue is = $ 133,333.33/.
Total sales in dollar value is = (83333.3+61538.46+133333.33)
Total sales in dollar value is = $ 278,205/.
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