1. Blake Company has a 25% margin of safety ratio. Its after-tax-return on sales is 6%, and its tax rate is 40%. Required: a. Determine the company's contribution margin percentage. b. Assuming the current sales are P120,000, determine the total fixed costs.

1. Blake Company has a 25% margin of safety ratio. Its after-tax-return on sales is 6%, and its tax rate is 40%. Required: a. Determine the company's contribution margin percentage. b. Assuming the current sales are P120,000, determine the total fixed costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Blake Company has a 25% margin of safety ratio. Its after-tax-return on sales is
6%, and its tax rate is 40%.
Required:
a. Determine the company's contribution margin percentage.
b. Assuming the current sales are P120,000, determine the total fixed
costs.

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