The controller of Grayson Industries prepared the following projected income statement: Sales $150,000 Total variable cost $90,000 Contribution margin $60,000 Total fixed cost $30,000 Operating Income $30,000 (a) The contribution margin ratio. (b) The variable cost ratio. (c) The break-even sales revenue for Grayson Industries.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Please solve this following requirements on these general accounting question

The controller of Grayson Industries prepared the following projected
income statement:
Sales $150,000
Total variable cost $90,000
Contribution margin $60,000
Total fixed cost $30,000
Operating Income $30,000
(a) The contribution margin ratio.
(b) The variable cost ratio.
(c) The break-even sales revenue for Grayson Industries.
Transcribed Image Text:The controller of Grayson Industries prepared the following projected income statement: Sales $150,000 Total variable cost $90,000 Contribution margin $60,000 Total fixed cost $30,000 Operating Income $30,000 (a) The contribution margin ratio. (b) The variable cost ratio. (c) The break-even sales revenue for Grayson Industries.
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