Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 64,240
Contribution margin $23,760
Total Fixed cost 11,070
Operating income $12,690

Required:

1. Calculate the contribution margin ratio. fill in the blank 1 %

2. Calculate the variable cost ratio. fill in the blank 2 %

3. Calculate the break-even sales revenue for Ashton. $fill in the blank 3

4. How could Ashton increase projected operating income without increasing the total sales revenue?

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_2

Step: 3

blur-text-image_3

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

Horngrens Financial & Managerial Accounting, The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

7th Edition

0136505279, 9780136505273

More Books

Students also viewed these Accounting questions

Question

c. Acafeteriawhere healthy, nutritionally balanced foods are served

Answered: 1 week ago