In March, Mitchell Limited had sales of $250,000 (50,000 units), total variable expenses of $190,000, and total
Question:
In March, Mitchell Limited had sales of $250,000 (50,000 units), total variable expenses of $190,000, and total fixed expenses of $36,000.
Required:
1. What is the company’s CM ratio?
2. Using the CM ratio, calculate the break-even level of sales in dollars.
3. Estimate the change in the company’s operating income if it increased its total sales by $20,000.
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Step by Step Answer:
1 The companys contribution margin CM ratio is Total sales 250000 Total variable expenses 1900...View the full answer
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Authors: Ray Garrison, Theresa Libby, Alan Webb
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