Question 8 (10 points)

If sales total $2,200,000 and fixed costs total $500,000 and variable costs are $650,000 of sales what the contribution margin ratio? Enter as a whole number, for example enter 40% as 40 (no decimal place).

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Question 9 (10 points)

If contribution margin is 58% and fixed cost is $450,000, what is the breakeven sales dollars? Enter as a whole number (no cents).

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Question 10 (10 points)

Great Book Company has one service department (Maintenance Services). Great Book has two production departments (Printing Department & Binding Department.) Maintenance Services has costs of $130,000 which is allocated to production departments based on their number of employees. Employees are:

Maintenance Services 3

Printing Department 4

Binding Department 8

Great Book uses the direct method for service cost allocation. Use this information to determine for Great Book Company the dollar amount of its maintenance costs that are to be absorbed by the printing department. Round answers to the nearest whole dollar (no cents).

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