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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject :- Accounting
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.
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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