Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Fixed
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Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center.
Fixed | Variable | Total | ||
Sales | $750,000 | |||
Costs | ||||
Goods sold | $337,500 | |||
Labor | $160,000 | 60,000 | ||
Supplies | 2,000 | 5,000 | ||
Utilities | 12,000 | 13,000 | ||
Rent | 24,000 | 0 | ||
Advertising | 6,000 | 24,500 | ||
Miscellaneous | 6,000 | 10,000 | ||
Total costs | $210,000 | $450,000 | (660,000) | |
Net income | $ 90,000 |
Contribution margin ratio: Answer
Annual break-even dollar sales volumes: $Answer
(b.) Determine the current margin of safety in dollars. $Answer
(c.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $35,000?
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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