The contribution margin ratio of the Furniture Department at Glad's Mercantile is 0.75. The trace able fixed

Question:

The ratio of the Furniture Department at Glad's Mercantile is 0.75. The trace able fixed costs for the Furniture Department are estimated at $188,000 per year. Sales in the Furniture Department next year are expected to be $300,000. What is the expected responsibility margin for the Furniture Department next year?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...