a. Spock Company budgets sales of $840,000, fixed costs of $378,000, and variable costs of $378,000. What

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a. Spock Company budgets sales of $840,000, fixed costs of $378,000, and variable costs of $378,000. What is the contribution margin ratio for Spock Company?

b. If the contribution margin ratio for Kirk Company is 34%, sales were $600,000, and fixed costs were $175,000, what was the income from operations?


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...
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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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