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Sophie Inc. is showing the following expected results for the sale of her dance book: Expected Sales Units Sales Total variable costs Contribution margin 3,000 $120,000 $72,000 $48,000 Total fixed costs Operating income Using the above information answer the following questions. $9,000 $39,000 What is the contribution margin ratio? HINT: remember the entry rules for percentages. What is the break-even in sales dollars?

Sophie Inc. is showing the following expected results for the sale of her dance book: Expected Sales Units Sales Total variable costs Contribution margin 3,000 $120,000 $72,000 $48,000 Total fixed costs Operating income Using the above information answer the following questions. $9,000 $39,000 What is the contribution margin ratio? HINT: remember the entry rules for percentages. What is the break-even in sales dollars?

FINANCIAL ACCOUNTING
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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What is the margin of safety in sales dollars? A/ What is the degree of operating leverage? Entry rules: enter your answer rounded to 2 decimal places. A If sales increase by 15%, by what percentage will the operating income increase? HINT: remember the entry rules for percentages AND remember to use your rounded answer for the degree of operating leverage that you just entered.
Transcribed Image Text:What is the margin of safety in sales dollars? A/ What is the degree of operating leverage? Entry rules: enter your answer rounded to 2 decimal places. A If sales increase by 15%, by what percentage will the operating income increase? HINT: remember the entry rules for percentages AND remember to use your rounded answer for the degree of operating leverage that you just entered.
QUESTION: Sophie Inc. is showing the following expected results for the sale of her dance book: Expected Sales Units Sales Total variable costs Contribution margin 3,000 $120,000 $72,000 $48,000 $9,000 $39,000 Total fixed costs Operating income Using the above information answer the following questions. What is the contribution margin ratio? HINT: remember the entry rules for percentages. What is the break-even in sales dollars? A/ A/
Transcribed Image Text:QUESTION: Sophie Inc. is showing the following expected results for the sale of her dance book: Expected Sales Units Sales Total variable costs Contribution margin 3,000 $120,000 $72,000 $48,000 $9,000 $39,000 Total fixed costs Operating income Using the above information answer the following questions. What is the contribution margin ratio? HINT: remember the entry rules for percentages. What is the break-even in sales dollars? A/ A/
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