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The controller of Orion Components Inc. prepared the following projected income statement: • Sales $200,000 • . • • Total Variable Cost = $120,000 Contribution Margin = $80,000 Total Fixed Cost = $50,000 Operating Income = $30,000 a. Calculate the contribution margin ratio. b. Calculate the variable cost ratio. c. Compute the break-even sales revenue for Orion Components Inc.

The controller of Orion Components Inc. prepared the following projected income statement: • Sales $200,000 • . • • Total Variable Cost = $120,000 Contribution Margin = $80,000 Total Fixed Cost = $50,000 Operating Income = $30,000 a. Calculate the contribution margin ratio. b. Calculate the variable cost ratio. c. Compute the break-even sales revenue for Orion Components Inc.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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The controller of Orion Components Inc. prepared the following projected income statement: • Sales $200,000 • . • • Total Variable Cost = $120,000 Contribution Margin = $80,000 Total Fixed Cost = $50,000 Operating Income = $30,000 a. Calculate the contribution margin ratio. b. Calculate the variable cost ratio. c. Compute the break-even sales revenue for Orion Components Inc.
Transcribed Image Text:The controller of Orion Components Inc. prepared the following projected income statement: • Sales $200,000 • . • • Total Variable Cost = $120,000 Contribution Margin = $80,000 Total Fixed Cost = $50,000 Operating Income = $30,000 a. Calculate the contribution margin ratio. b. Calculate the variable cost ratio. c. Compute the break-even sales revenue for Orion Components Inc.
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