a. Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.) fill in the blank 1 % b. If the contribution margin ratio for Peppa Company is 35%, sales were $630,000, and fixed costs were $154,350, what was the income from operations?
a. Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.)
fill in the blank 1 %
b. If the contribution margin ratio for Peppa Company is 35%, sales were $630,000, and fixed costs were $154,350, what was the income from operations?
$fill in the blank 2
SOLUTION:
Contribution Margin Ratio:
Contribution Margin Analysis is a technique of cost volume profit analysis. Contribution Margin Ratio is the ratio of contribution margin to sales. It shows the relationship between contribution margin to sales. Contribution margin ratio is calculated as follows;
Contribution Margin Ratio =( Contribution / Sales ) x 100
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