(a) If Swannanoa 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?
(b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Question

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(a) If Swannanoa 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?
(b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

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The Answer of ​
(a) If Swannanoa 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?
(b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

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