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 |

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, 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

part 1
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven volume in dollars?
(rounded)
Select one:
a. All listed choices are incorrect.
b. $160,000.
c. $180,000.
d. $140,000.
part 2
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven ratio to sales?
(rounded)...

Cornerstone Exercise 16.1 (Algorithmic)
Variable Costs, Contribution Margin, Contribution Margin Ratio
Super-Tees Company plans to sell 15,000 T-shirts at $16 each in
the coming year. Product costs include:
Direct materials per T-shirt
$5.60
Direct labor per T-shirt
$1.12
Variable overhead per T-shirt
$0.48
Total fixed factory overhead
$43,000
Variable selling expense is the redemption of a coupon, which
averages $0.80 per T-shirt; fixed selling and administrative
expenses total $19,000.
Required:
1. Calculate the following values:
Round dollar amounts to the...

ManAcct, Inc. reported the following totals for 2014: Sales
1,000,000 Variable Costs 450,000 Contribution Margin 550,000 Fixed
Costs 320,000 Net Income 230,000 These results can be further
broken down by ManAcct’s two divisions, CGMA and CMA. CGMA CMA
Sales $750,000 $250,000 Variable Costs 275,000 175,000 Traceable
Fixed Costs $100,000 $60,000 Allocated Common Fixed Costs $120,000
$40,000 What is the CMA division’s segment margin? A. $15,000 B.
($25,000) C. $75,000 D. $375,000

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?
$

Total
Store A
Store B
Sales
$1,000,000
$400,000
$600,000
Variable expenses
580,000
160,000
420,000
Contribution margin
420,000
240,000
180,000
Traceable fixed expenses
300,000
100,000
200,000
Store segment margin
120,000
140,000
-20,000
Common fixed expenses
50,000
20,000
30,000
Net operating income
$70,000
$120,000
($50,000)
Due to its poor showing, consideration is being given to closing
Store B. Studies show that if Store B is closed, one-fourth of its
traceable fixed expenses will continue unchanged. The studies also
show that closing Store...

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