Question
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 61,600 Contribution margin $26,400 Total Fixed cost 10,200 Operating income $16,200 Required: 1. Calculate the contribution margin ratio. % 2. Calculate the variable cost ratio. % 3. Calculate the break-even sales revenue for Ashton. $ 4. How could Ashton increase projected operating income without increasing the total sales revenue?
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Collaborative Auditing
Authors: James Pelletier, Yuki Matsuura
2nd Edition
0894139606, 9780894139604
