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?
$
a)
Sales - $12,40,000
Fixed Cost - $39100
Variable Cost - $1,73,600
Total Sales - Variable cost
$12,40,000 - $1,73,600 = $10,66,400
Contribution margin = $10,66,400
Fixed Cost / contribution margin
$ 10,66,400 / $ 39100 =27.27%
b)
Contribution margin = 53%
Sales = $ 5,16,000
Fixed Cost = $2,13,310
Contrubution margin =Sales Revenew - Variable Cost, whcih means variable is not part of contrubution margin
Sales of value $ 5,16,000, includes variable cost
Sales(Includes Variable Cost) | 516000 | 100 | |
Actual Sales | 273480 | 53 | Contribution Margin |
Fixed Cost | 213310 | ||
Actual Sales-Fixed Cost | 60170 |
SO the Income from Operation is - $60170
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