Question

The controller of Andreston Company prepared the following projected income statement:
Sales ................ $93,000
Total variable cost ......... 70,680
Contribution margin ........ $22,320
Total fixed cost ......... 12,000
Operating income ......... $10,320

Required:
1. Calculate the contribution margin ratio.
2. Calculate the variable cost ratio.
3. Calculate the break-even sales revenue for Andreston.
4. Conceptual Connection: How could Andreston increase projected operating income without increasing the total sales revenue?


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  • CreatedSeptember 22, 2015
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