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Bert Company budgets sales of $1,300,000, fixed costs of $52,700, and variable costs of $234,000. a. What is the contribution margin ratio for Bert Company? b. If the contribution margin ratio for Ernie Company is 70%, sales were $576,000, and fixed costs were $314,500, what was the income from operations?

Bert Company budgets sales of $1,300,000, fixed costs of $52,700, and variable costs of $234,000. a. What is the contribution margin ratio for Bert Company? b. If the contribution margin ratio for Ernie Company is 70%, sales were $576,000, and fixed costs were $314,500, what was the income from operations?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
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Bert Company budgets sales of $1,300,000, fixed costs of $52,700, and variable costs of $234,000. a. What is the contribution margin ratio for Bert Company? b. If the contribution margin ratio for Ernie Company is 70%, sales were $576,000, and fixed costs were $314,500, what was the income from operations?
Transcribed Image Text:Bert Company budgets sales of $1,300,000, fixed costs of $52,700, and variable costs of $234,000. a. What is the contribution margin ratio for Bert Company? b. If the contribution margin ratio for Ernie Company is 70%, sales were $576,000, and fixed costs were $314,500, what was the income from operations?
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