Question
Star Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the
Star Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below:
|
| Standard | Deluxe | Premium | Total |
| Percentage of total sales | 48% | 20% | 32% | 100% |
| Sales | $120,000 | $50,000 | $80,000 | $250,000 |
| Less: variable costs | 36,000 | 40,000 | 44,000 | 120,000 |
| Contribution margin | $84,000 | $ 10,000 | $ 36,000 | $130,000 |
| Less: fixed expenses |
|
|
| $117,000 |
| Net operating income |
|
|
| $ 13,000 |
- Calculate the contribution margin ratio for Peak Company.
- Use your answer to (a) to calculate Peaks break-even point in sales dollars.
- Assuming that the product mix shifted to 40% Standard, 40% Deluxe and 20% Premium, calculate Peaks new contribution margin ratio.
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Audit Of The Federal Bureau Of Investigation Annual Financial Statements Fiscal Year 2015
Authors: Office Of The Inspector G Eneral, U.S. Department Of Justice
1st Edition
1530341264, 978-1530341269
