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At a Monthly Volume of £25,000, a Company Incurs Variable

Question 28

Essay

At a monthly volume of £25,000, a company incurs variable cost of £19,000 and fixed costs of £6,000.
Required:
Determine each of the following values:
a.
Variable cost ratio
b.
Contribution margin ratio
c.
Monthly break-even pound sales volume
d.
Monthly margin of safety in monetary terms

Correct Answer:

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