Company manufactures and sells a telephone answering machine. The company's contribution format income statement for the most recent year is given below:

(a) What is the Contribution Margin (CM) Ratio (or percent of sales)?

(b) Calculate break-even point both in total units and total sales dollars.

Transcribed Image Text:

Sales Less variable expenses Contribution margin Less fixed expenses Net operating income Total $1,200,000 900,000 300,000 240,000 $60,000 Per unit $60 45 15 ====== Pct. of sales (Ratios) 100% ?% ?% Sales Less variable expenses Contribution margin Less fixed expenses Net operating income Total $1,200,000 900,000 300,000 240,000 $60,000 Per unit $60 45 15 ====== Pct. of sales (Ratios) 100% ?% ?%

Answer rating: 100% (QA)

a CM ratio CMsales 1560 025 25 b B... View the full answer