A magazine company has the capacity to print and sell 200,000 magazines per month. It sells each magazine for $4.50, has fixed costs of $520,000 per month, and variable costs of $0.50 per magazine.

a. b. Calculate the contribution ratio. contribution margin and What sales amount will result in a net income of $21,000 for the month?

c. What will be the net income at capacity?

AppendixLO1