Essay
In a normal month, the Whitewater Company generates total sales of $25,000. To do so they incur variable costs of $15,000 and fixed costs of $10,000.
Required: Calculate each of the following:
A. Variable cost ratio
B. Contribution margin ratio
C. Monthly break-even point in dollar sales
D. Monthly margin of safety in dollars
Correct Answer:
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A. Variable cost ratio = $15,000 / $25,0...View Answer
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Correct Answer:
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