How much is the contribution margin and contribution rate


Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independant questions.

Sales = $863,000

Fixed Cost = $592,000

Total Variable Cost = $203,490

Total Cost = $795,490

Net Income = $67,510

a) How much is the contribution margin and contribution rate? (type an integer or a decimal.)

b) To break even, the business needs sales to be $? (round up to the nearest cent as needed.)

c) If the business was to spend $25,000 to upgrade their processes, it would need sales to be $__ to break even. (round up to the nearest cent as needed.)

d) If 5% more meals were sold, the resulting net income would be $___ (type an integer or decimal.)

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Financial Management: How much is the contribution margin and contribution rate
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