Break-Even in Sales Revenue, Margin of SafetySports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000.Required:1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.)What is the break-even point in sales revenue?2. What was the margin of safety for Sports-Reps last year?3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a good idea? Break-Even in Sales Revenue, Margin of SafetySports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000.Required:1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.)What is the break-even point in sales revenue?2. What was the margin of safety for Sports-Reps last year?3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a goodidea?

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Description: Break-Even in Sales Revenue, Margin of SafetySports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000.Re

Contribution margin ratio : It is the ratio of contribution to sales. Contribution margin ratio =…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Break-Even in Sales Revenue, Margin of Safety Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000. Required: 1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.) What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? 3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a good idea?

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