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ROK Accountancy provides two lines of service: Accounting % of total Revenue: 60% Contribution Margin Ratio: 30% Tax % of total Revenue: 40% Contribution Margin
ROK Accountancy provides two lines of service: Accounting % of total Revenue: 60% Contribution Margin Ratio: 30% Tax % of total Revenue: 40% Contribution Margin Revenue: 40% Fixed costs are $5,100,000
1. What is the weighted average contribution margin ratio? (i.e. 10%)
2.What will the sales be for accounting services at the breakeven points? (i.e. $1,000,000)
3.What will be the total contribution margin at the breakeven point?(i.e. $1,000,000)
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