Question - Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue
The controller of Sandoval Company prepared the following projected income statement:
Sales $90,000
Total Variable cost 68,000
Contribution margin $22,000
Total Fixed cost 6,800
Operating income $15,200
Required:
1. Calculate the contribution margin ratio. Round your answer to the nearest whole number.
2. Calculate the variable cost ratio. Round your answer to the nearest whole number.
3. Calculate the break-even sales revenue for Sandoval. If required, round your answer to nearest dollar.