Exercise 18-14 Predicting sales and variable costs using contribution margin LO C2

Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next period. Its expected contribution margin ratio is 69%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs.

Required 1

Compute the amount of total dollar sales.

Dollar Sales
Choose Numerator:	/	Choose Denominator:	=	Total Dollar Sales
	/		=	Total dollar sales
	/		=

Required 2

Compute the amount of total variable costs.

Sales
Fixed costs
Pretax income
Variable costs