4. Contribution Margin Ratio

a. Young Company budgets sales of $1,080,000, fixed costs of $43,700, and variable costs of $194,400. What is the contribution margin ratio for Young Company?

_______%

b. If the contribution margin ratio for Martinez Company is 63%, sales were $556,000, and fixed costs were $269,720, what was the operating income?

$

5. Break-even sales and sales to realize operating income

For the current year ended March 31, Cosgrove Company expects fixed costs of $494,400, a unit variable cost of $49, and a unit selling price of $73.

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize operating income of $112,800. units