The following partial information is from Brown Bag, Inc.'s income statement for 2006, preObj. 2 pared using variable costing:

Brown Bag's contribution margin ratio is \(40 \%\). What percentage of Brown Bag's revenue is used to cover variable costs? What were variable costs at this sales volume? What was sales revenue in 2006 ?

Transcribed Image Text:

Sales revenue Less variable costs Contribution margin Less fixed costs Net income $30,000 $10,000