11. The Bayview Convenience Store sells a range of different products, such as milk, canned goods, hardware, and magazines. On average, the store marks up the goods it buys by 50%; thus, something that cost $1 would be sold for $1.50, and the gross margin would be one-third of the selling price. Fixed costs are $5,000 per month. Required Calculate the following: (a) The contribution margin ratio (b) The monthly break-even sales revenue (c) The sales revenue needed to make an operating profit of $2,000 per month
11. The Bayview Convenience Store sells a range of different products, such as milk, canned goods, hardware, and magazines. On average, the store marks up the goods it buys by 50%; thus, something that cost $1 would be sold for $1.50, and the gross margin would be one-third of the selling price. Fixed costs are $5,000 per month. Required Calculate the following: (a) The contribution margin ratio (b) The monthly break-even sales revenue (c) The sales revenue needed to make an operating profit of $2,000 per month
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...
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