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Hi, I need some help with my cost accounding homework please Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of
Hi, I need some help with my cost accounding homework please
Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue
The controller of Pelley Company prepared the following projected income statement:
Sales | $95,000 |
Total variable cost | 68,400 |
Contribution margin | $26,600 |
Total fixed cost | 14,000 |
Operating income | $12,600 |
Required:
- 1.Calculate the contribution margin ratio.
- 2.Calculate the variable cost ratio.
- 3.Calculate the break-even sales revenue for Pelley.
- 4.CONCEPTUAL CONNECTION How could Pelley increase projected operating income without increasing the total sales revenue?
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