Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue

The controller of Ashton Company prepared the following projected income statement:

Sales $88,000

Total variable cost 23,760

Contribution margin $64,240

Total fixed cost 43,800

Operating income $20,440

Required:

1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number.

CH7 HW Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales Total variable cost $88,000 23,760 $64,240 43,800 $20,440 Contribution margin Total fixed cost Operating income Required 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar Check My Work Previous Next