Question

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?
$

Answer 1

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