can I try this aagain. and can we try step by step please Presented below income

Question

can I try this aagain. and can we try step by step please

Presented below income statement for Chauncey's farm for the month of April sales 110,000 Operating expenses 38,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin Cost of goods sold 57,000 operating income 15,000 ratio is 30 percent. a rearrange the above statement to the contribution margin format, b if sales increase by 20 percent, what wil the firms' operating income? c. Calculate the amount of revenue required for Chauncey's firm to break even

Explanation / Answer

A. I think there is some mistake in typing....should be like it has been determined that ccompany's contribution margin is 30% , cost of goods sold is 57000 and operating income is 15000.

Sales 110000

Less variable cost 77000

Contribution.@30%of sales 33000

B. If sales increased by 20%

Then.

Sales 110000×1.2 = 132000

Less cost of goods sold 57000×1.2 = 68400

Gross income 63600

Less operating expenses 38000

Operating income 25600

C. Break even = fixed cost / contribution

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.