Abby Corporation sells 3 products. Sales and Contribution Margin Ratio for the 3 products follow:

	Product
	A	B	C
Sales	$20,000	$40,000	100,000
Contribution Margin Ratio	45%	40%	15%

Given these information, how much is the Contribution Margin Ratio for the company as a whole?

 

Erin Corporation manufactures and sells two types of shirts, standard and deluxe. Erin expects the following operating results next year for each type of towel:

	Standard	Deluxe
Sales	$450,000	$50,000
Total Variable Expenses	$360,000	$20,000

If Erin expects to incur $57,600 in fixed expenses next year, what is the break-even point?

 

3. Bona Company has consistently generated these operating results for the past several years:

Sales		100%
Cost of Sales
Variable	50%
Fixed	10%	60%
Gross Profit		40%
Operating Expenses
Variable	20%
Fixed	15%	35%
Operating Income		5%

For the coming year, the expected total sales amounts to $19.50 million. In dollars, what amount should be the break-even sales?

Answer rating: 100% (QA)

To calculate the Contribution Margin Ratio for the company as a whole we need to calculate the weighted average of the Contribution Margin Ratios of each product based on their respective sales Produc... View the full answer