Certainly! Below is the transcription for an educational website context:---**Chapter 20****Contribution Margin Ratio**a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribution margin ratio for Young Company?[Input Box] %b. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,000, and fixed costs were $1,500,000, what was the operating income?$[Input Box]---This section introduces the concept of the contribution margin ratio, which is vital for understanding how sales relate to costs and profits in a company. For part a, users are prompted to calculate the contribution margin ratio, which involves determining the percentage of sales revenue that exceeds total variable costs. In part b, the task involves using a given contribution margin ratio to find out the operating income by subtracting fixed costs from the contribution margin.

Contribution margin = sales - variable costs = $112900000-66611000 = $46,289,000

a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,000, and fixed costs were $1,500,000, what was the operating income?

a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,000, and fixed costs were $1,500,000, what was the operating income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit and a contribution margin ratio of 20% a. Compute the unit sales price and unit contribution margin. b. Compute the sales volume in units required for Porter Corp to earn and operating income of $900,000 c. Compute the dollar sales volume required for Porter Corp to earn an operating income of $900,000.
Calculate the contribution margin ratio of a company with sales of $180,000 and operating income of $37,000. Variable costs of the company are 52% of sales. 41% 48% 36% 24%
Raines Company's sales are $940,000 with operating profits of $168,000. If the contribution margin ratio is 40%, what did the fixed costs amount to? Multiple Choice $408,000. $376,000. $308,000. $208,000
Contribution Margin Ratio a. Young Company budgets sales of $1,150,000, fixed costs of $80,200, and variable costs of $356,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 62%, sales were $517,000, and fixed costs were $240,410, what was the operating income?
The following CVP income statements are available for Sunland Company and Carla Vista Company: Sunland Company Carla Vista Company Sales revenue $370,000 $370,000 Variable costs 222,000 74,000 Contribution margin 148,000 296,000 Fixed costs 98,000 246,000 Operating income $50,000 $50,000 (a) Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Sunland Company Carla Vista Company Break-even point $ $ Margin of safety ratio de % %
Skywalker Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less: Variable expenses 100,000 Contribution margin 75,000 Less: Fixed expenses 62,500 Net operating income $ 12,500 What is the contribution margin ratio?
For Sheridan Company, variable costs are 70% of sales, and fxed costs are $179,400. Management's net income goal is S69,000. Compute the required sales in dollars needed to achieve management's target net income of S69.000. (Use the contribution margin approach) Required sales
Bryce Co. sales are $848,000, variable costs are $466,300, and operating income is $229,000. What is the contribution margin ratio? Oa. 60.2% Оb. 55.0% Ос. 40.7% Od. 45.0%
Sheridan Company had the following operating data for the year for its computer division: sales, $700000; contribution margin, $171000; total fixed costs (controllable), $119000; and average total operating assets, $300000. What is the controllable margin for the year? O $171000. O 57%. O $52000. O 17.3%.
A company has sales of $125,000, variable costs of $45,000 and fixed costs of $30,000. The contribution margin ratio is
Ajay
a. Yountz Company budgets sales of $1,130,000, fixed costs of $68,600, and variable costs of $305,100. What is the contribution margin ratio for Yountz Company? (Enter your answer as a whole number.)fill in the blank 1 % b. If the contribution margin ratio for Vera Company is 38%, sales were $809,000, and fixed costs were $224,420, what was the income from operations?$fill in the blank 2