Solved

(A) If Swannanoa Company's Budgeted Sales Are $1,000,000, Fixed Costs

Question 109

Essay

(a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, whatis the budgeted contribution margin ratio?
(b) If the contribution margin ratio is 30%, sales are $900,000 and fixed costs are $200,000, what is the operating profit?

Correct Answer:

verifed

Verified

(a) Contribution margin = $1,0...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q25: Costs that remain constant in total dollar

Q104: Carter Co. sells two products, Arks and

Q105: Racer Industries has fixed costs of $900,000.

Q109: If a business had sales of $4,000,000

Q111: Carrolton, Inc. currently sells widgets for $80

Q112: Match the following terms with their definitions.<br>

Q113: Calzone Co. has budgeted salary increases to

Q157: Cost-volume-profit analysis can be presented in both

Q214: The systematic examination of the relationships among

Q225: Companies with large amounts of fixed costs