Question

contribution margin ratio

a. coastal company budgets sales of \\$38,600,000, fixed costs of \\$5,000,000, and variable costs of \\$23,932,000. what is the contribution margin ratio for coastal company?

b. if the contribution margin ratio for bushner company is 48%, sales were \\$50,000,000, and fixed costs were \\$18,400,000, what was the operating income?

Explanation:

Calculate contribution margin ratio for Coastal Company

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Calculate operating income for Bushner Company

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Answer:

Question a

Coastal Company budgets sales of $38,600,000, fixed costs of $5,000,000, and variable costs of $23,932,000. What is the contribution margin ratio for Coastal Company?
<blank>38</blank> %

Question b

If the contribution margin ratio for Bushner Company is 48%, sales were $50,000,000, and fixed costs were $18,400,000, what was the operating income?
$ <blank>5,600,000</blank>