Question
ABC Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the
ABC Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below:
|
| Standard | Deluxe | Premium | Total |
| Percentage of total sales | 48% | 20% | 32% | 100% |
| Sales | $120,000 | $50,000 | $80,000 | $250,000 |
| Less: variable costs | 36,000 | 40,000 | 44,000 | 120,000 |
| Contribution margin | $84,000 | $ 10,000 | $ 36,000 | $130,000 |
| Less: fixed expenses |
|
|
| $117,000 |
| Net operating income |
|
|
| $ 13,000 |
- Calculate the contribution margin ratio for ABC Company.
- Use your answer to (a) to calculate ABCs break-even point in sales dollars.
- Assuming that the product mix shifted to 40% Standard, 40% Deluxe and 20% Premium, calculate ABCs new contribution margin ratio.
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Development Of Audit Findings Of A National Survey Of Healthcare Provider Units In England Evaluating Medical Audit
Authors: Yvette, Buttery
1st Edition
1898845018, 978-1898845010
