Cristache Food Corporation makes frozen appetizers from spinach. The president finds that sales and variable costs are consistently proportional. Data for 1998 follow:

Required:
Express the above data in a cost function format. What is the variable contribution
margin ratio (percentage)?

Transcribed Image Text:

Sales Cost of appetizers made and sold: Spinach and direct labor Processing overhead: Variable Fixed Gross margin... Less operating expenses: Selling expenses: Variable Fixed General expenses: Variable Fixed Net operating income. $ 33,000 4,000 18,000 $ 5,000 12,000 2,000 16,000 $100,000 55,000 $ 45,000 35,000 $ 10,000