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%?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

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
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Vineyard industries has the following revenue and cost structure: Sales $25000 Variable costs 20,000 Contribution Margin...
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...
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 a. Yountz Company budgets sales of $730,000, fixed costs of $49,300, and variable...
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...
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...
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...
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...
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT