Bloom Company predicts it will incur fixed costs of $265,000 and earn income of $367,500 in the next period. Its expected contribution margin ratio is 55%. Compute the amount of expected total dollar sales. Compute the amount of expected total variable costs.

Bloom Company predicts it will incur fixed costs of $265,000 and earn income of $367,500 in the next period. Its expected contribution margin ratio is 55%. Compute the amount of expected total dollar sales. Compute the amount of expected total variable costs.

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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