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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
النسخة 6الرقم المعياري الدولي: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
النسخة 6الرقم المعياري الدولي: 978-1305103962 تمرين 75
Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio
Arberg Company's controller prepared the following budgeted income statement for the coming year:
Required:
1. What is Arberg's variable cost ratio? What is its contribution margin ratio?
2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement.
3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer.
4. What is Arberg's expected margin of safety?
5. What is Arberg's margin of safety if sales revenue is $380,000?
Arberg Company's controller prepared the following budgeted income statement for the coming year:
Required:
1. What is Arberg's variable cost ratio? What is its contribution margin ratio?
2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement.
3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer.
4. What is Arberg's expected margin of safety?
5. What is Arberg's margin of safety if sales revenue is $380,000?
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Part 1)
Calculate variable cost ratio a...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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