Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are$42,000,total fixed expenses are $24,000, and the sales revenue needed to break even is $48,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancil's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a5 whole number.) The contribution margin ratio is 50 %. Prepare the contribution margin income statement at the calculated sales level
Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are$42,000,total fixed expenses are $24,000, and the sales revenue needed to break even is $48,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancil's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a5 whole number.) The contribution margin ratio is 50 %. Prepare the contribution margin income statement at the calculated sales level
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are$42,000,total fixed expenses are $24,000, and the sales revenue needed to break even is $48,000. Determine the company's current 1) sales revenue and 2) operating income.
(Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.)
Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancil's current (1) sales revenue and (2) operating income.
Begin by computing the contribution margin ratio. (Enter the result as a5 whole number.)
|
The contribution margin ratio is
|
50
|
%.
|
Prepare the contribution margin income statement at the calculated sales level.
NOTE: the other picture is to show the options.
Transcribed Image Text:Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are
sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then pre
Use the contribution margin income statement and the shortcut contribution margin approach
Begin by computing the contribution margin ratio. (Enter the result as a whole number.)
50 %.
The contribution margin ratio is
Prepare the contribution margin income statement at the calculated sales level.
Stancil Drycleaners
Contribution Margin Income Statement
Contribution margin
Less: Fixed expenses
Less: Variable expenses
Operating income (loss)
Sales revenue
Choose from any list or enter any number in the input fields and then click Check An:
Transcribed Image Text:Stancil Dry Cleaners has determined the following about its costs: Total varia
sales revenue and 2) operating income. (Hint: First, find the contribution ma
Use the contribution margin income statement and the shortcut contribution
Begin by computing the contribution margin ratio. (Enter the result as a whc
50 %.
The contribution margin ratio is
Prepare the contribution margin income statement at the calculated sales I
Stancil Drycleaners
Contribution Margin Income Statement
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