Following are a number of problems that will facilitate your knowledge of the cost-volume-profit relationship concept. This is not a The assignment is Show your work! 1. Assume that a firm currently has sales or revenues of $100,000, variable costs of $60,000, fixed costs of $30,000. Calculate the following: Contribution margin Contribution margin ratio Net profit Net profit ratio as percent of total sales

2. Using the above example, if revenues and variable expenses were to drop by 20%, what would the following be? Contribution margin Contribution margin ratio Net profit Net profit ratio as percent of total sales