Question

a. Bryan Company budgets sales of $1,800,000, fixed costs of $1,000,000, and variable costs of $1,080,000. What is the contribution margin ratio for Bryan Company? (Enter your answer as a whole number.)
%

b. If the contribution margin ratio for Carnegie Company is 32%, sales were $900,000, and fixed costs were $210,000, what was the income from operations?
$

Answer 1

a)
Sales =$ 1,800,000
Variable costs = 1,080,000
Contribution margin = $720,000
contribution margin ratio = 720000/1800000 = 40%

b) sales = $900,000
contribution margin ratio 32%
contribution margin = 288000
less fixed cost = 210000
Income from operation = $7800

Answer 2

Income from operation $78,000