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Jackson Company recently calculated its break-even sales revenue to be $15,000. For each dollar of sales revenue, $0.70 goes to

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Jackson Company recently calculated its break-even sales revenue to be $15,000. For each dollar of sales revenue, $0.70 goes to cover variable costs.

Compute the following:

a. The contribution margin ratio.

b. Total fixed costs.

c. The sales revenue that would have to be generated to earn an operating income of $9,000.


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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a If variable costs are 70 of sales …View the full answer


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Related Book For  answer-question
Financial and Managerial Accounting the basis for business decisions

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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Question Details
Chapter # 20
Section: Brief Exercises
Problem: 6
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Question Posted: April 17, 2014 10:58:20
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