In March, Roland had revenues of $612,000 fixed costs of $199,260, and a profit of $51,660. Answer the following questions: Required: a. What was the contribution margin ratio? b. What monthly sales volume (in dollars) would be needed to break even? c. What sales volume (in dollars) would be needed to earn $162,360?
In March, Roland had revenues of $612,000 fixed costs of $199,260, and a profit of $51,660. Answer the following questions: Required: a. What was the contribution margin ratio? b. What monthly sales volume (in dollars) would be needed to break even? c. What sales volume (in dollars) would be needed to earn $162,360?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:In March, Roland had revenues of $612,000 fixed costs of $199,260, and a profit of $51,660. Answer the following questions:
Required:
a. What was the contribution margin ratio?
b. What monthly sales volume (in dollars) would be needed to break even?
c. What sales volume (in dollars) would be needed to earn $162,360?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
What was the contribution margin ratio?
Contribution Margin
%
Required A
Required B >
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