Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Anderson's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a whole number.) The contribution margin ratio is %.
Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Anderson's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a whole number.) The contribution margin ratio is %.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dry Cleaners has determined the following about its costs: Total variable expenses are
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![Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to
break even is $50,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the
contribution margin income statement.)
C
Use the contribution margin income statement and the shortcut contribution margin approaches to determine Anderson's current (1) sales revenue and (2) operating income.
Begin by computing the contribution margin ratio. (Enter the result as a whole number.)
The contribution margin ratio is
%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbff57474-cbb0-4980-a671-9d5df9f83d3a%2Fa183becb-dba8-4fb5-ae94-3ebc24317c32%2Fa72506z_processed.png&w=3840&q=75)
Transcribed Image Text:Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to
break even is $50,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the
contribution margin income statement.)
C
Use the contribution margin income statement and the shortcut contribution margin approaches to determine Anderson's current (1) sales revenue and (2) operating income.
Begin by computing the contribution margin ratio. (Enter the result as a whole number.)
The contribution margin ratio is
%.
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