Boise Corp had a margin of safety of $375,000 last month,with sales revenue of $1,000,000 and fixed costs of $250,000.
a.What are break-even sales?
b.What is the contribution margin ratio?
c.How much profit did Boise earn last month?
d.How much would sales have to increase for Boise to earn profit of 600,000?
Correct Answer:
Verified
b.40%...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q98: Plymouth Corp.sells units for $100 each.Variable costs
Q99: If a firm sells more than one
Q100: Knoll,Inc.currently sells 15,000 units a month for
Q101: The manager of Calypso,Inc.is considering raising its
Q102: Glade,Inc.is trying to decide whether to increase
Q104: Akron Corp.had a margin of safety of
Q105: The manager of Arbor,Inc.is considering raising its
Q106: Graham Corp.sells two products.Product A sells for
Q107: Forge,Inc.is trying to decide whether to increase
Q108: Juniper had revenues of $450,000 in March.Fixed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents