Citrus company buys a variety of citrus fruit from growers and then processes the fruit into...

Transcribed Image Text:

Citrus company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. Current cost structure: Current annual sales revenue Current Variable costs Current Fixed costs totaled $2,000,000 44% of Sales $600,000 Required: Answer the following questions below the question and use cell references to make your computations. 1. What is the current contribution margin ratio? 2. What is the current break-even point in sales dollars? 3. Determine the margin of safety in sales dollars. 4. Prepare a Contribution margin income statement for the current sales. Sales Less Variable costs Contribution margin Less Fixed costs Profit Citrus company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. Current cost structure: Current annual sales revenue Current Variable costs Current Fixed costs totaled $2,000,000 44% of Sales $600,000 Required: Answer the following questions below the question and use cell references to make your computations. 1. What is the current contribution margin ratio? 2. What is the current break-even point in sales dollars? 3. Determine the margin of safety in sales dollars. 4. Prepare a Contribution margin income statement for the current sales. Sales Less Variable costs Contribution margin Less Fixed costs Profit

Answer rating: 100% (QA)

Answer To prepare a contribution margin income statement we need to calculate the contribution margi... View the full answer