Sales 415,000 Variable costs ration =.68 total variable cost 282,200 Contributio

ID: 2375429 • Letter: S

Question

Sales 415,000 Variable costs ration =.68

total variable cost 282,200 Contribution margin ratio=.32

contribution margin 132,800

Total fixed costs 63,000

Operating income 69,800

Suppose actual revenues are $30,000 more than budgeted. Operating income increases by 9,600

Prepare a new contribution margin income statement. (please help complete the statement below)

Sales____________

Variable costs___________

Contribution margin____________

Fixed costs=63,000

Operating income_____________

Sales (415000+30000) = $ 445,000

Variable costs @ 68% of sales = $ 302,600

Contribution margin (sales - variable cost) = $ 142,400

Fixed costs $ 63,000

operating income (contribution margin - fixed cost) = $ 79,400

(Tutorial note : check correctness = previous income + increase as stated)

( = 69800+9600 = 79400), hence correct,

regards and thank you

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