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What level of sales dollars do we need to make a profit of $15,300? CM Ratio Fixed Expenses+ Desired Profit $22,600 15,300 CM Ratio
What level of sales dollars do we need to make a profit of $15,300? CM Ratio Fixed Expenses+ Desired Profit $22,600 15,300 CM Ratio Total Percentage Proof: Sales Variable Expenses Contribution Margin Fixed Expenses Operating income Toy Store Contribution Income Statement For the month ended December 31, Total Per Unit Sales $200,000 $40 Variable expenses Cost of Goods sold $120,000 24 Sales Commissions $20,000 Delivery of necklaces $25,000 Offsite billing 5000 1 34 $170,000 $30,000 Total variable expenses Contribution margin Fixed expenses Store rent $8,000 Sales salaries $3,000 Advertising $2,000 Depreciation on laptops $600 Depreciation on office equip $800 Offsite billing $1,000 Admininstrative salaries $6,000 Employee benefits $1,200 Total fixed expenses $22,600 Net operating income (loss) $7,400
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Answer Solution Working 1 CM Ratio Proof 2 Sales 20000000 3 Variable expenses 17000000 ...Get Instant Access to Expert-Tailored Solutions
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