Answered: If sales are $828,000, variable costs…

If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is the contribution margin ratio? A. 64% B. 36% C. 68% D. 32%

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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Question

If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is the contribution margin ratio?

A. 64%

B. 36%

C. 68%

D. 32%

Which of the graphs in Figure 5-1 illustrates the nature of a mixed cost?

A. Graph 2

B. Graph 4

C. Graph 1

D. Graph 3

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