Question

# a. Yountz Company budgets sales of \$1,240,000, fixed costs of \$39,100, and variable costs of \$173,600....

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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