Question

Ripa Company has the following data: Sales revenue $360,000 Variable costs $240,000 Contribution margin $120,000 Fixed...

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%?

Homework Answers

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
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Contribution Margin Ratio a. Young Company budgets sales of $720,000, fixed costs of $51,800, and variable...
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...
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...
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...
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...
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...
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...
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...
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....
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT