If sales revenue is $7,600 and variable costs are $3,040, what is the variable c

Question

If sales revenue is $7,600 and variable costs are $3,040, what is the variable cost percentage?

Variable rate

If sales revenue is $158,000 and variable costs are 44 % what is the dollar contribution margin?

Contribution in dollars

You are asked to cater a buffet for 70 people at $18/person. Your variable cost is 72% and fixed costs are $400 per day. Calculate contribution margin in dollars and operating income. Should you accept?

Operating income

Should you accept?

Sales $7,600 Variable cost $3,040

Variable rate

If sales revenue is $158,000 and variable costs are 44 % what is the dollar contribution margin?

Sales $158,000 Variable cost 44.0%

Contribution in dollars

You are asked to cater a buffet for 70 people at $18/person. Your variable cost is 72% and fixed costs are $400 per day. Calculate contribution margin in dollars and operating income. Should you accept?

Customer count Price Variable cost Fixed cost Revenue Variable cost at 72% Contribution margin Fixed cost

Operating income

Should you accept?

Explanation / Answer

If the sales revenue is $ 158,000, and the variable cost ratio is 44 % :

You are asked to cater a buffet for 70 people:

Though there is an operating loss of $ 47.20, acceptance of the order would help to absorb $ 352.80 of the fixed cost. Hence, the catering order should be acceped.

Sales $ 7,600 Variable Cost 3,040 Variable Cost Ratio 40 %

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