Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative exa Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900 by using the point in sales equation. $ 246,000✔ Feedback Check My Work 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1. Enter amounts as positive numbers.
Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative exa Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900 by using the point in sales equation. $ 246,000✔ Feedback Check My Work 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1. Enter amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution
margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense
Required:
1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900 by using the point in sales equation. $
246,000 ✓
Feedback
Check My Work
2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1. Enter
amounts as positive numbers.
Chillmax Company
Contribution Margin Income Statement
At Point in Sales for Target Income
Total
Sales
Total variable cost
Total contribution margin
Total fixed cost
Operating income.
Re
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