The controller of Pelly Corporation prepared the following projected income statement: Sales - $95,000 Total variable cost $68,400 Contribution margin - $26,600 Total fixed cost - $14,000 Operating Income - $12,600 A) Calculate the contribution margin ratio. B) Calculate the variable cost ratio. C) Calculate the break-even sales revenue for Pelly.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The controller of Pelly Corporation prepared the following projected income
statement:
Sales - $95,000
Total variable cost $68,400
Contribution margin - $26,600
Total fixed cost - $14,000
Operating Income - $12,600
A) Calculate the contribution margin ratio.
B) Calculate the variable cost ratio.
C) Calculate the break-even sales revenue for Pelly.
Transcribed Image Text:The controller of Pelly Corporation prepared the following projected income statement: Sales - $95,000 Total variable cost $68,400 Contribution margin - $26,600 Total fixed cost - $14,000 Operating Income - $12,600 A) Calculate the contribution margin ratio. B) Calculate the variable cost ratio. C) Calculate the break-even sales revenue for Pelly.
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