Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family - owned group of restaurants, had the following sales and expenses: Sales

Contribution Margin and Contribution Margin Ratio
For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses:
Sales for all restaurants
$325,000
Food and paper
Payroll and employee benefits
Occupancy and other expenses
Selling, general, and administrative expenses
Other operating expenses
Net operating expenses
Operating income (loss)
Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses.
a. What is McDooley's contribution margin?
$
b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place.
%
$
d. What would have been the operating income or loss for the recent year if sales had been $6,500 more?
$
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: John Hoggett, Lew Edwards, John Medlin

6th Edition

0470806583, 978-0470806586

More Books

Students also viewed these Accounting questions

Question

What is a budget? (p. 314)

Answered: 1 week ago