Stefanko Manufacturing Has Prepared the Following Income Statement According to Company Records,$100,000 of Cost of Goods Sold and Sales

Essay

Stefanko Manufacturing has prepared the following income statement:
$\begin{array}{ll}\text { Sales }&\$450,000\\\text { Cost of goods sold }&200,000\\\text { Gross margin } & 250,000 \\\text { Operating expenses } & 196,000\\\text { Operating income }&\$54,000\end{array}$
According to company records,$100,000 of Cost of Goods Sold and $100,000 of Operating Expenses are fixed.
Required:
A) Compute the contribution margin.
B) Compute the contribution margin ratio.
C) Compute the break-even point in sales dollars.