Question: Stancil Drycleaners has determined the following about its costs Total
Stancil Drycleaners has determined the following about its costs: Total variable expenses are $38,000, total fixed expenses are $36,000, and the sales revenue needed to break even is $45,000. Use the contribution margin income statement and the shortcut contribution mar- gin approaches to determine Stancil Drycleaners’ current (1) sales revenue and (2) operating income. (Hint:First, find the contribution margin ratio; then, prepare the contribution margin income statement.)
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