a. Gloucester Company budgets sales of $11,750,000, fixed costs of $2,115,000, and variable costs of $6,815,000. What
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a. Gloucester Company budgets sales of $11,750,000, fixed costs of $2,115,000, and variable costs of $6,815,000. What is the contribution margin ratio for Gloucester Company?
b. If the contribution margin ratio for Eatontown Company is 35%, sales were $6,440,000, and fixed costs were $1,300,000, what was the income from operations?
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...
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a Sales 11750000 Variable costs 6815000 Contribution ma...View the full answer
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