(a) Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000 What is the contribution margin ratio for Bert Company (b) If the contribution margin ratio for Ernie Company is 40 , sales were $750,000, and fixed costs were $225,000, what was the income from op...

a Sales 1250000 Variable costs 200000 Contribution ...

(a) Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000. What...

Question:

(a) Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000. What is the ratio for Bert Company?
(b) If the ratio for Ernie Company is 40%, sales were $750,000, and fixed costs were $225,000, what was the income from operations?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...