saigelthegreat2094 saigelthegreat2094
  • 13-08-2020
  • Business
contestada

If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio

Respuesta :

majocgonzalez majocgonzalez
  • 14-08-2020

Answer:

34%

Explanation:

The formula to calculate the contribution margin ratio is:

Contribution margin ratio= (Sales – variable expenses)/sales

Sales=$803,000

Variable expenses=$803,000*66%=$529,980

Now, you can replace the values:

Contribution margin ratio=($803,000-$529,980)/$803,000

Contribution margin ratio=0.34

According to this, the answer is that the contribution margin ratio is 34%.

Answer Link

Otras preguntas

What does the phrase "a grave injustice " mean??
why is 5/12 greater than 3/4
Why are there fewer traditional economies today?
who were the real rulers of sparta?
Is there a correlation between the number of chromosomes ad the complexity of an organism? Give support for your answer.
If a runner covers 400 meters in 50 seconds, what is the runners average speed? What if the runner takes 60 seconds to cover the same distance?
Terry has between 50 and 100 pennies and her piggy bank. She can count them two at a time and come out even. She can also count them three and five at a time an
Evaluate the expression when a=6 and y= -7
Gravity and friction are two kinds ofa.inertiab.forcesc.massesd.gravity
What would happen if cytokinesis took place before mitosis?