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Category > Accounting Posted 19 Aug 2017 My Price 7.00

Pelley Company

Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue

The controller of Pelley Company prepared the following projected income statement:

Sales                                                        $95,000

Total variable cost                                     68,400

Contribution margin                            $26,600

Total fixed  cost                                         14,000

Operating income                                $12,600

 

Required:

1.       Calculate the contribution margin ratio.

2.       Calculate the variable cost ratio.

3.       Calculate the break-even sales revenue for Pelley.

4.       CONCEPTUAL CONNECTION How could Pelley increase projected operating income without increasing the total sales revenue?

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 01:08 PM My Price 7.00

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