Calculate The total fixed cost Last year, Junction Company earnedan operating income of $32,500 witha contribution margin ratio of 0.35.Actual revenue was $280,000.Calculate the total fixed cost. Roundyour answer to the nearest dollar, ifrequired.

We can use the contribution margin income statement formula:Operating Income = Contribution Margin -…

Answered: Last year, Junction Company earned an…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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Last year, Junction Company earned an operating income of $32,500 with a contribution margin ratio of 0.35. Actual revenue was $280,000. Calculate the total fixed cost. Round your answer to the nearest dollar, if required.