Calculate the contribution margin of a product for a service company if revenues are $50,000, variable expenses are $30,000, and fixed expenses are $15,000. a.) $ 20,000 b.) $80,000 c.) $35,000 d.) $5,000
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- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.if sales revenue is $35,000, fixed cost is $5,000, and net operation income is $10,000, what is the contribution margin?If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue needed to achieve the target operating income is $100,000, what are total fixed expenses? O A. $55,000 О В. $25,000 о с. $85,000 O D. $16,500
- Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.A company has total sales of $1,000,000, variable costs of $500,000, and fixed costs of $200,000. What is the contribution margin ratio?You are required to (i)Determine profit, when sales =200,000 Fixed cost=40,000 BEP=160,000 (ii)Determine sales, when fixed cost=20,000 Profit=10,000 BEP=40,000
- Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?A company’s contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase?A. $1,250B. $3,750C. $5,000D. $8,750
- If the contribution margin ratio for France Company is 43%, sales are $407,000, and fixed costs are $94,000, the operating income is a.$94,000 b.$81,010 c.$175,010 d.$64,808Contribution Margin Ratio a. Matzinger Company budgets sales of $1,150,000, fixed costs of $155,300, and variable costs of $690,000. What is the contribution margin ratio for Matzinger Company? % b. If the contribution margin ratio for Raynor Company is 39%, sales were $639,000, and fixed costs are $194,380, what is the operating income? Check My Work Previous NextThe records of Valium Company show a contribution margin ratio of 25%. The company desires to earn a profit of $15,000 and has fixed costs of $25,000. Determine the sales revenue that would have to be generated in order to earn the desired profit $106,250 O $240,000 O $160,000 O $340,000 O None O