Concept of contribution margin ratio
If a company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been:
A) $750,000.
B) $300,000.
C) $1,250,000.
D) $200,000.
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Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month.
Using the direct approach, what is the consolidated amount of cash collected by the business combination from its customers?
Review topics covered in lecture hours, from textbook, reference books plus online research, to conduct a comprehensive study about wireless network security implementation at home.
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Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Spor
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