Question

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%?

Answer #1

Contribution margin ratio = $ 138,000/ $ 414,000 =
**33.33%**

Working:

Calculation | ||

Sales revenue | $ 414,000 | 360000+(360000*15%) |

Less: variable cost | $ 276,000 | 240000+(240000*15%) |

Contribution margin | $ 138,000 | |

Less: Fixed cost | $ 100,000 | |

Operating income | $ 38,000 |

Vineyard industries has the following revenue and cost
structure: Sales $25000 Variable costs 20,000 Contribution Margin
5,000 Fixed Costs 5400 Operating Income (400) If Vineyard
industries can increase the volume of sales by 25%, operating
income will be:

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. 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

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?
$

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, 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?

The contribution margin ratio decreases if
Multiple Choice
The percentage of contribution margin to sales revenue
increases.
The percentage of variable cost to sales revenue increases.
The percentage of variable cost to sales revenue decreases.
Total fixed costs decrease.

Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales
Revenue
The controller of Sandoval Company prepared the following
projected income statement:
Sales
$90,000
Total Variable cost
79,000
Contribution
margin
$11,000
Total Fixed cost
6,500
Operating income
$4,500
Required:
1. Calculate the contribution margin ratio.
Round your answer to the nearest whole number.
%
2. Calculate the variable cost ratio. Round
your answer to the nearest whole number.
%
3. Calculate the break-even sales revenue for
Sandoval. If required, round your answer...

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?
$___

For a particular company, variable costs are 65% of sales and
the total contribution margin at the breakeven point is $227,500.
If sales volume increases by $10,000, net operating income will
increase by
A.$3,500
B.It cannot be determined from the information given
C.No choices are correct
D.It depends on whether the company is above or below the
breakeven point
E.$6,500

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