Last month Annie's Homemade total sales and variable costs for 6-ounce servings were $18,000 and $4,500, respectively. Its total sales and variable costs for 8-ounce servings were $7,000 and $1,750, respectively. Its total fixed costs for the month were $11,000. Required: 1. What was last month's overall contribution margin ratio? 2. Using last month's data, what is the company's overall break-even point in dollar sales? Note: Round up to the nearest whole dollar. Complete this question by entering your answers in the tabs below.
Last month Annie's Homemade total sales and variable costs for 6-ounce servings were $18,000 and $4,500, respectively. Its total sales and variable costs for 8-ounce servings were $7,000 and $1,750, respectively. Its total fixed costs for the month were $11,000. Required: 1. What was last month's overall contribution margin ratio? 2. Using last month's data, what is the company's overall break-even point in dollar sales? Note: Round up to the nearest whole dollar. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Last month Annie's Homemade total sales and variable costs for 6-ounce servings were $18,000
and $4,500, respectively. Its total sales and variable costs for 8-ounce servings were $7,000 and
$1,750, respectively. Its total fixed costs for the month were $11,000.
Required:
1. What was last month's overall contribution margin ratio?
2. Using last month's data, what is the company's overall break-even point in dollar sales?
Note: Round up to the nearest whole dollar.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
What was last month's overall contribution margin ratio?
The overall contribution margin ratio was
%
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