Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of salesrevenue, $0.40 goes to cover variable costs.a. Compute the contribution margin ratio.b. Compute the total fixed costs.c. Compute the sales revenue that would have to be generated to earn an operating income of $144,000.a. Contribution margin ratiob. Total fixed costsc. Sales revenue60 %

The contribution Margin is calculated as difference between sales and variable cost. The break even…

Answered: Dominic's Deli recently calculated its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Contribution Margin Ratio a. Matzinger Company budgets sales of $1,150,000, fixed costs of $155,300, and variable costs of $690,000. What is the contribution margin ratio for Matzinger Company? % b. If the contribution margin ratio for Raynor Company is 39%, sales were $639,000, and fixed costs are $194,380, what is the operating income? Check My Work Previous Next
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Munoz Company incurs annual fixed costs of $121,320. Variable costs for Munoz's product are $22.40 per unit, and the sales price is $35.00 per unit. Munoz desires to earn an annual profit of $45,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units
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