Calculate the contribution margin ratio? Velocity Enterprises reported sales of $825,000 for the period. The company'svariable costs are 61% of sales, and its total fixed costs amount to $130,000. Calculatethe contribution margin ratio.A) 39%B) 41%C) 37%D) 44%

Step 1: Definition of Contribution Margin RatioThe Contribution Margin Ratio (CMR) is a financial…

Answered: Velocity Enterprises reported sales of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Parkway Limited has provided the following data for the most recent year: net operating income, $53,800; fixed expense, $87,500; sales, $225,000; and CM ratio, 63%. What is the company's total contribution margin? a. $141,750 b. $101,000 c. $148,500 d. $155,100 MCQ
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The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 998,000 $ 49.90 Variable expenses 598,800 29.94 Contribution margin 399,200 19.96 Fixed expenses 321,200 16.06 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $508,000 during the year. 3. The company achieves a cost savings of $6,000 per year by using less costly materials.

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Velocity Enterprises reported sales of $825,000 for the period. The company's variable costs are 61% of sales, and its total fixed costs amount to $130,000. Calculate the contribution margin ratio. A) 39% B) 41% C) 37% D) 44%