Question

a. if swaimania companys budgeted sales are \\$1,000,000, fixed costs are \\$350,000, and variable costs are \\$600,000, what is the budgeted contribution margin ratio?

b. if the contribution margin ratio is 30%, sales are \\$900,000, and fixed costs are \\$200,000, what is the operating income?

Explanation:

Calculate budgeted contribution margin ratio

Using the Contribution Margin Ratio knowledge point

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Calculate operating income

Using the Operating Income and Contribution Margin Ratio knowledge points

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Answer:

Question a

a. If Swatmania Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio?
<blank>40</blank>%

Question b

b. If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?
$<blank>70,000</blank> operating income